If they don't eat they will be eaten or simply starve to death. In the current trend for developing more effective market power, we can observe emphasis on the value-added strategy. Farmers and ranchers are saying that in order to survive as independent entrepreneurs they need a piece of the marketing margin between the farm gate and consumers' purchases. Some distinctive characteristics can be found in the new generation cooperatives. The member is obliged to deliver and the cooperative, to receive delivery and add value to the crop or livestock marketed.
Membership is limited.
And delivery rights are transferable to other bonafide producers and may appreciate or depreciate depending on the cooperative's performance. Members put their money on the table up front when purchasing delivery rights. High levels of cash patronage refunds are issued annually due to this up-front capitalization of the business. New cooperatives of this type formed in the 1990s include Dakota Growers Pasta Cooperative, North American Bison Cooperative, Spring Wheat Bakers, U.S. Premium Beef, and Mountain View Harvest. One of the attractive features of this approach from an economist's perspective is that the cooperative, properly managed, can tailor supplies to effective demand.