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The Rise of Cooperatives

This contract is between Alice Hanger of Louisa County, Virginia, and the Richmond Co-operative Milk Producer's association. Members of the co-op pooled the milk they produced in order to reduce competition between milk producers and obtain a higher price. Once pooled, the Co-op sold the milk to consumers and paid all members at an equal rate for the milk they contributed.
This letter, written by the president of the Grange League Federation in 1934, to egg producers in Virginia. Farmers and retailers turned to cooperatives like the G.L.F. during the Great Depression as a way to control supply and raise prices of farm products as well as increase the purchasing power of individuals by pooling resources, providing services, and setting quality standards. This letter shows that the G.L.F. in New York contracted with egg producers in Virginia in 1935 in order to procure egg shipments to New York retailers when eggs were scarce. The G.L.F also benefited producers by offering egg inspection services at a nominal cost, thus lessen the expenses of the producers.