Why might a farmer choose to sell milk through a cooperative?

A farmer may choose to sell milk through a cooperative primarily to collaborate with other producers for better pricing. Cooperatives enable farmers to pool their resources and strengthen their bargaining power when negotiating with buyers. By working together, members can achieve economies of scale, reduce costs, and improve their market position. This collaboration often results in better pricing as the cooperative can negotiate larger quantities at more favorable rates than an individual farmer might achieve alone.

Additionally, cooperatives could potentially enhance service levels and provide valuable support, such as shared marketing efforts, which can further help secure a better price for their products. The collective effort can create more stable and reliable market access, ensuring that farmers receive fair compensation for their milk. This approach highlights the strength in numbers and the benefits of partnership in the agricultural supply chain, making it a favorable choice for many dairy producers.