The cooperative helps to sell its members' products on profitable markets by
grouping large batches for sale in distant markets or processing the products that
contributes to increasing the market value of members' products.
The dairy ASC can sale the milk using these channels (Figure 3):
Figure 3. Dairy ASC sales channels
Source: compiled by authors based on [4]
The studied ASC sells the large batches of milk to dairy processing plants; to
entrepreneurs involved in milk processing; it also sells the milk to local markets (up to
100 liters a day); the rest of the milk remains for farmers’ own consumption. Milk
quality is estimated by the following parameters: fat, acidity, protein content, density,
the presence of water. Additionally, an antibiotic, bacteria and somatic cell content
analysis are conducted. The basic kilogram of milk has 3.4% of fat and 3% of protein.
Dairy plants pay bonuses to the members of the cooperative if their milk has higher fat
content than the basic indicator.
Promotion. Promotion is a communication policy that includes the following
elements: advertising, sales promotion, public relations and personal sales aimed to
distribute information about the company and its products, to form the necessary image
of the manufacturer and its products. It should be noted that the components of
promotion are not developed in agricultural service cooperatives [5].
One of the main tools of the marketing mix used by the studied ASC is public
relations. The cooperative works closely with the public, holds regular meetings with
farmers, businessmen, directors of agricultural enterprises and other social groups. The
studied ASC disseminates information about its activities in regional branch
directories, periodicals and newspapers, takes part in local exhibitions, holidays, pieces
of training, informational, scientific, educational seminars, and international
conferences. The management of the service cooperative organizes excursions for
village heads, students of agrarian universities, as well as for ordinary people, invites
them to the conference and seminars of skilled professionals.
The program of dairy family mini-farms in the Dnipropetrovs’k region is an
example of an effective cooperation between government, business, and charitable
organizations. The specialists of Dnipropetrovs’k Agricultural Advisory Service
(Extension Services) within the Canadian project help families to develop a business
Dairy
plants
Middlemen
Direct sales of raw milk
(markets and consumers)
Own processing and marketing
of processed products
Entrepreneurs
Own needs
Dairy ASC sales channels
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