date:Feb 20, 2014
dairy company.
Under the cooperative model, farmers and dairy firms share risks and profits throughout the industrial chain. Farmers are obliged to ensure high-quality milk and firms have to buy it all at a fixed price according to the contract, and share dividends with the farmers if they make profits.
This model gives farmers a higher share of the value added, improving their bargaining power and reducing market risks, meanwhile it guarantees quality, safety and sustainability, Schaap said.