Dutch agriculture has benefitted in the past 40 years from significant increases in production efficiency and the market opportunities of the Common Agricultural Policy (CAP). Marketing co-operatives, whilst often controlling significant market shares, have also concentrated on processing efficiency, encouraged to do so both by market conditions and members' expectations. During the 1980s operating conditions changed as the direction of the CAP came under pressure, the GATT round proceeded, and both processors and retailers responded to the possibilities of European integration. To meet these new challenges co-operatives will have to change both their funding methods and market strategies. Failure to do so will lead to them becoming increasingly peripheralised in the market place.