What Is a Producer Cooperative?

A producer cooperative is typically made up of multiple producers working in different types of enterprises, such as fishing, forestry and craft workshops. Each member of the cooperative is an independent producer from each other and can use the agreement to take different kinds of actions.

Some of the actions that a producer cooperative can take include purchasing new equipment or insurance for farms. Members of a cooperative can also hire a mutual sales team or management team that can help organize their production systems. Funds pooled from a producer cooperative can also be used to purchase a shared storage facility or processing plant.