Producer group
As a producer group (short catchment , also producer Ring) is generally an association of agricultural designated enterprises of various kinds. It can be an economic association , a civil law partnership ( GbR ), a cooperative or any other legal person under private law . The legal basis is the Agricultural Market Structure Act . Many farmers , vintners , meat producers and organic farmers who want to maintain their independence have therefore come together in producer groups. They remain competitive through the inexpensive joint purchase of feed , seeds , agricultural equipment etc. and the joint marketing of their products.
Usually the quantities they produce are too small to be able to supply larger customers. As a result, the circle of potential customers is limited and the individual producer, be it vegetables, wine or meat and poultry, is in direct competition with his colleagues. Enormous price pressure and economic uncertainty can result.
In a producer group, they can market their products via a common pool . A company that is accepted by everyone acts as a major supplier and supplies the customer with all goods from a single source, so to speak . The necessary quality and delivery security is thus guaranteed and is a decisive advantage for the customer. The producers can continue to focus on their operations and the community takes care of the sale of the products. Observing the market and discovering the best marketing opportunities for the members is the sole responsibility of the company.