This article is based on the results of the project 'Support for Farmers' Cooperatives (SFC)' which was contracted by the European Commission, DG Agriculture and Rural Development (Contract Number: 30-CE-0395921/00-42). 1. Federation of Danish Cooperatives 2000. In this article, a transnational cooperative is defined as a cooperative with members in more than one country, while an international cooperative is a cooperative with members in only one country and non-member farmer-suppliers or farmercustomers in one or more other countries. 2.

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ACKNOWLEDGEMENTSThis study is a joint effort of numerous people. The project has really shown me how small a person can feel when faced with a large, complex problem.The initial idea for this research came from Professors James D. Shaffer and John Staatz of Michigan State University, USA. They were willing to assign me to the project examining the coordination problems of marketing systems, and the Finnish Academy was willing to finance the work. I am deeply indebted to both organizations.Many people at Michigan State University provided guidance and good ideas for my study. James Shaffer, A. Allan Schmid and Larry Hamm gave me crucial comments. Without John Staatz's patient help this study would never have been finished. Pellervo Society, Central Organization of Farmers' Cooperatives in Finland provided working facilities for two years, which was a great help. Juhani Tauriainen, thanks for believing in me even during the times I myself didn't! Aimo Köy-lijärvi of the Market Research Institute of Pellervo Society has put a lot of effort in providing the dairy data for me.Also I want to thank all the helpful people at Valio who were willing to devote a lot of their limited time to me and my questions. Special thanks to Director Ensio Hytönen, who patiently time and time again pulled me back down to the grownd again.Several people in the faculty of Agriculture and Forestry have helped me through. The comments of professors Hahtola and Prihti were very valuable. Thank You, Vice Rector Risto Ihamuotila for your assistance in the project and in guiding me through the formal procedures.Marja Oravainen from Autora Oy has carefully and without sparing her efforts inspected my English.Thanks Coordination of supply and demand in (he dairy marketing system with special emphasis on the potential role of farmer cooperatives as coordinating institutionsAbstract. The study attempts to gain a better understanding of matching the ultimate supply and demand for milk at various steps of the production-distribution sequence. The purpose is to assess the suitability of price or regulations in solving various coordination problems. Special emphasis is given to the cooperatives as coordinating institutions.The theory in the study draws from Transaction Cost Economics, Economics of Public Choice, and Industrial Organization approach. The application used is termed Marketing Systems Analysis. It is applied to the dairy marketing system providing explanations to the surrent structure and analyzing four problems: (1) coordination of total supply and demand if milk, When economics focuses its attention on production, alternative production costs and economic efficiency, the core of marketing economics is exchange and its implications on production. How are various preferences taken into account in economic activities? Whose preferences are taken into account and in what order? How is the production system able to convert the preferences into products and services offered? How are costs, benefits and risk distributed? In other words, how is...

This literature review summarizes research on member influence in cooperatives conducted in Scandinavia and some of the research conducted in West Germany. The review divides the contents of member influence into three components; individual factors, the cooperative organization’s internal factors and the organization’s external factors. As individual factors, participation, representation and representativeness are considered. Conflicts in cooperative organizations, the effect of the growth of the organization and the rules of decision making are discussed as organizations internal factors. The major interest groups in addition to members (the market, personnel and the society) are presented as external factors. The external factors are increasingly challenging the nature of cooperatives as member interest organizations.