The paper examines the situation and role of co-operatives in several European countries. It shows that even though they were originally created to protect their farmers, the co-operative's aim of furthering members or maximising the benefit for members is not achieved in a sufficient way. The farm-gate milk prices do not cover costs, and returns on the farmers’ capital investments are distributed only to a very limited extent. The co-operative members scarcely have any possibility any more of influencing the economic activity of “their dairy”. The aim of this paper is to present some of the structural reasons that are responsible for creating this situation. In the examples from the countries these reasons are further examined in one way or another.