Reference no: EM132402635

1. Click on the link to Calamco which is a non-traditional fertilizer cooperative. Look at the "about" tab, and "membership" tab and in particular the "historical data" under the "membership" tab. Does Calamco follow a strategy of a broad or limited product line? Do you think that Calamco has non-member business?

2. If I joined Calamco in 2016 how many shares of stock would I have to own for each purchase right of one ton of anhydrous ammonia? What would have been my investment per ton of purchase right? What was my rebate per ton and my return on my membership investment?

3. Look at the website for Tennessee Farmers Cooperative. Click on the "Product" tab and then on the "Product Categories" tab. Click through some of the various products and categories. Does TFC follow a strategy of a board or limited product line? Does TFC likely have non-member business?

4. The text discussed competition between cooperatives. What are the advantages and disadvantages of cooperatives directly competing?

5. The text also discusses non-member business. Since non-member profits cannot be distributed as patronage how does the text indicate that the non-member profits are retained?

6. What is a price maintenance policy (strategy)? What is a favorable price policy (strategy)?

7. Does the business at cost principle imply that a cooperative should not have differential prices when the there are cost differences associated with purchase volume?

8. What is the policy of "netting"? If you managed a cooperative where the fertilizer department lost money every year and the feed department made money would you argue for netting or two patronage pools?