Developing a system to pool purchasing clout

GOAL
• Develop a system for cooperative buying of Ag inputs with the objective of
achieving cost savings and greater freedom of choice for products and services
and to increase profits, increase efficiency, and become more competitive.

IDEAS:
• Potential collaborative buying opportunities include:

Insurance	Electricity
Capital	Fuel
Packaging	Marketing
Ag Chemicals	Fertilizer
Plastics	Business Services
Labor	Technology
Transportation	Production inputs
Waste/Byproduct Services

HOW WILL THIS INITIATIVE BE ACHIEVED?
What needs to happen to get started?
• Recruit interested Ag businesses
• Determine which products and services could be purchased cooperatively
• Form a cooperative buying organization

What resources are needed?
• Purchasing agency
• Centralized billing and accounting system
• Legal expertise
• Establish credit with assets

What problems/hurdles need to be overcome?
• Program logistics including distribution, centralized ordering, timely payment and
collection, and enough members to create critical mass
• Acceptance of current vendors to a collaborative structure
• Potential negative impact on current vendors
• Dynamics of a cooperative - loss of some freedom of personal choice
• Quality control

How will CAB gain support from individual CT Ag businesses?
• Focus on those CT Ag businesses that have traditionally used cooperatives to buy
• Demonstrate opportunity for significant cost savings

How will the initiative become self-sustaining?
• Show consistent cost savings and members will become loyal
• Fund the venture through cost savings