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December 25, 2004

Cranberries and Ocean Spray

Interesting blog by BusinessPundit on the cranberry story.  The original story is from the Economist. One element that the story does not go into too much detail is that Ocean Spray is a co-operative of 700 cranberry farmers.  I have always felt that co-operatives are "socialist organizations" that can neither be efficient or effective.  Clearly that is not the case.  A co-operative close to home that Chari and I frequent is Arizmendi Bakery.  I don't know the economics of their business but the Pizza is spectacular and the staff very friendly.  Its something I hope to study further . . .

Posted by Venky Ganesan at 09:21 AM | Permalink

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Comments

Co-operatives are not necessarily inefficient or ineffective, particularly in agriculture, where they generally serve to allow producers to combine forces for packaging, distribution, marketing, etc. Sunkist, Land O' Lakes, and Sunmaid are all co-operatives.

Whether or not a co-operative will be efficient and successful probably has more to do with the motivation for its formation than its corporate structure.

Posted by: Tino | Dec 25, 2004 11:06:24 AM

I agree. I made the comment more to reflect my own biases than to make a statement on co-operatives. Having grown up in a socialistic country i.e. India I have biases agains collective bargaining institutions like Unions and Co-ops.

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