Market power is transforming the food industry as supermarket chains merge into fewer yet larger companies. By focusing on what their customers expect in the supermarket, these large chains then exercise considerable power over the whole food system. Ultimately, they can impact what and how farmers grow their fruits, vegetables, livestock or grains. Some will look to technology and improved market position to prosper. Others will fail, even though using one or both of these philosophies.
Cooperatives are owned by their users, so they reflect the desires of their farmer-owners.
They also reflect what's happening within the cooperative's membership. Understanding membership's business and their expectations for the cooperative is essential to its survival. More farmers are also concerned about finding markets for their livestock and dealing with environmental issues, such as animal waste. Some farmers are marketing their livestock directly to consumers and don't have the knowledge or resources needed to deal with new environmental standards. Cooperatives will undoubtedly be asked to provide a bigger role than just providing feed.