DEPARTMENT OF AGRICULTURE


under normal conditions, sold that crop at a price satis-
factory to themselves. But no cooperative yet brought forth
has mastered the vexing problem of EXCESS or SURPLUS
 "What can be done about it? The thing that MUST be
done, if cooperative marketing shall function, is to CON-
TROL NOT ONLY MARKETING, BUT AHEAD OF IT,
CONTROL PRODUCTION.
 "Whether this can readily be done is the BIG QUES-
TION LOOMING UP BEFORE COOPERATIVES. It will
have to be solved or all our efforts to help ourselves through
organizations will in the end fail. The facts must be faced.
The cooperatives we are to have in our state will give us
some IMMEDIATE RELIEF and will prove a blessing, but
unless our growers by common consent can control produc-
tion, they will not be able to control prices. COOPERA-
TIVE MARKETING CANNOT SUCCESSFULLY HANDLE
A SURPLUS SO LARGE AS TO EXCEED DEMAND."
 Never before has proper management in this respect
been so urgent or fundamental to far products. Agricul-
tural competitive conditions demand ever increasing
competence.

 FACTORS OF SUCCESSFUL OPERATION
 A cooperative faces its critical period when it begins
to operate. There are a number of salient factors impera-
tive to the success of any cooperative association, the lack
of one or more of which too often spelled defeat:
 1-Its existence must be justified by a DEFINITE need.
 2-The volume of business must be LARGE enough.
 3-The management must be capable and efficient.
 4-The structure must be adequate and flexible.
 5-The business policies must be sound.
 6-The association must be supported and controlled
 by its members.
 7-Too early or too rapid expansion must be avoided.