Collective strategy of small dairy economic units operating in an oligopsonistic market

This article addresses a problem in the Mexican dairy industry and involves stake-holders upon whom the operation of this sector depends. I am referring to the small dairy units, which have long been in a vulnerable situation due to their operating in an oligopsonistic market where the processors hold dominance. A lack of technology, resources, training, business knowledge, project entrepreneurship, along with isolat-ed operation, exacerbates the situation. Since the late 20th century, cooperation has emerged as a strategy for small and medium-sized economic units to survive in a chal-lenging market and to improve their well-being. The work aims to highlight a model of business cooperation between dairy units. By pooling resources and efforts, produc-tive development is strengthened with the goal of achieving survival and in order to contribute to regional development. The case study of Cooperative Prolea in Acatic, Jalisco is used