Important characteristics of many agricultural markets are costly to transport raw products and relatively few processors, one or more of which is often a cooperative. This paper analyzes pricing behavior in these oligopolistic, spatial markets and focuses specifically upon the conjecture that cooperatives may have a precompetitive effect on the behavior of rival non-eo-op processors. The existence and magnitude of a precompetitive effect is shown to depend upon a number of structural and strategic factors including competitive relations among the non-eo-op processors and a cooperative's membership and pricing policies.