coordination of production and processing by means other than market transaction alone offer the possibility of increasing the value of production resources in several ways. if producer are committed to a particular processing operation, the need for buyers and the cost of search for raw material is reduced. in addition, if the schedule of product delivery to processing is prearranged, scheduling of processing operations can be more precise and can be accomplished at a cost lower than it is if raw material arrival is more nearly random. a relatively constant and reliable flow of product allows the design of processing facilities to operate at minimum cost. there is also potential gain from production of crop or live-stock varieties and sizes that allow lower-cost methods of processing or production of higher valued products