As shown in Figure 1, marketing revenues generally held steady during the last three years. Other operating income dropped as well. Grain and cotton cooperatives also took large hits to their revenues. Production of both cotton and grain increased from 1998. However, the gain made in these sectors couldn't overcome the drop in the other sectors.
Gross margins show resilience to sluggish sales.
An increase in operating expenses for the cooperatives wiped out any gains made from higher gross margins. Operating expenses jumped 10 percent in 1999, the largest increase in the five-year period examined. Labor expenses account for some of the increase. The average increase for labor was 5 percent in 1999. Only some cooperatives and sectors could control labor costs.