Indeed, staying in the agricultural production sector in Brazil is not one of the simplest tasks. This is because, to consolidate your business, a lot of willingness and hard work is required. Due to these factors, many producers have joined agricultural cooperatives. Want to know how they really work? Check out below, on the blog of 7MBoots!
Essentially, an agricultural cooperative is a type of organization formed by individuals who wish to engage in a common economic activity. In other words, it is like a company, managed by several people. This way, each member has a stake. This means that earnings are divided proportionally among all members. When there is a need to make investments, they are also shared among the members. Furthermore, any agricultural cooperative has the motto "Unity is Strength". Therefore, all participants aim to achieve the greatest negotiating power while also processing a larger volume of production.
Basically, agricultural cooperatives operate in a straightforward manner: a certain number of rural producers who perform the same activity come together and organize their production to sell it in large quantities to the market. For example, milk producers unite to sell all their dairy production collectively, soybean producers do the same, and so on. Additionally, decision-making within a cooperative is never done by just one person, but rather democratically through assemblies. Finally, the operation of agricultural cooperatives is established by Law No. 5.764/1971.
Without a doubt, a well-structured agricultural cooperative provides services through the processing of certain crops and pasteurizing milk for producers. This is an excellent way to ensure product quality for those who are just beginning.
Moreover, as it is a properly registered entity, an agricultural cooperative guarantees the rights of rural workers, such as the payment of INSS, the thirteenth salary, and access to health care and education.
Indeed, in addition to having greater negotiating power, an agricultural cooperative has a team of technicians such as veterinarians and agronomists to monitor, assist, and support small producers in all necessary procedures.
Above all, agricultural cooperatives are great allies of technological development aimed at the field. This is because they always seek the best solutions for the farmers' challenges. Due to the significant rural need, it is now possible to find software that can trace a product, automate tasks, and reduce costs. Furthermore, as we start to observe and analyze this information, it becomes clear that joining an agricultural cooperative can be a huge advantage for your business. After all, from it, you will be able to solidify your brand and ensure that high-quality products reach consumers. So, cowboys and cowgirls, did you enjoy learning about what it is, how it works, and the benefits of an agricultural cooperative? Stay tuned to the 7MBoots blog, as we will have many news updates here soon!
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