Union promotes co-operatives in Germany

Co-operatives in the dairy industry provide numerous benefits such as predictability, stability and voice, according to a recent overview by the German Genossenschaftsverband (co-operatives union). Dairy co-operatives provide farmers with a maximum of safety in the current difficult situation with oversupply and the resulting low price, it is claimed.

In current political and public debate in Germany, the benefits of co-operative societies hardly play a role. But Genossenschaftsverband wants to change that and is now informing the public about co-operatives’ special features.

As producer groups, the supply relationship between members and their co-operative is such that dairy co-operatives are geared to meet and keep a high common quality of milk, states the Genossenschaftsverband. The full purchase obligation creates predictability and security, especially for small and geographically remote milk producers, who without their co-operative would have more difficulty marketing their milk.

Achieved revenues of co-branded products are distributed to the members in the form of milk payments, and the co-operatives reserve work for the development of joint business operations.

Finally, the Genossenschaftsverband states that the farmers as members decide the strategic direction of the cooperative dairy and select their management and supervisory boards directly or through representatives. Large and small producers are treated equally here.

In European dairy, the cooperatives have a average market share of about 60%, whereas in Germany around two thirds of the milk produced is handled by cooperatives.