The Economic Role of the Portuguese Agricultural Cooperatives

Abstract

Abstract:Since 2008 Portugal began to be influenced by a financial crisis, public budget troubles and an economic crisis. In line with the new economic paradigm within the EU, is publicly acknowledged that the overcoming of this crisis should be based on the production of transactional goods, where the agricultural sector deserves a special attention. The objective of this paper is to analyze the economic role of the Portuguese agricultural marketing cooperatives, including an overview of the Portuguese agricultural sector, the typology of Portuguese cooperatives and position in the agro food chain, the institutional environment, internal governance and performance of the agricultural cooperatives.

Organizational structures and the evolution of dairy cooperatives in Southern Brazil: A life cycle analysis

“…To allow for those structures, cooperatives must adjust and remake their bylaws (Hendrikse & Feng, 2013). This conclusion is also valid for other cases and (developed) countries: Rebelo and Caldas (2015) derived the same conclusions in their analysis of the role of agricultural cooperatives in Portugal, showing the need for cooperatives to be more flexible in their organizational structure to solve a wide range of their current problems. 4 Proportional investment capital, division of profits and voting rights in accordance with the cooperative use (milk in order to control the opportunism of "free riders".…”

Resilience and performance of wine cooperatives in Castilla La-Mancha (Spain) during a period of financial crisis

“…Portuguese wine cooperatives are facing difficulties in operating in a more competitive global market. They need to change their policy of maximum return to partners as this severely reduces their capacity to improve their debt structure and finance long-term investment (39). Studies on the Languedoc-Roussillon region in France point out the need to reconcile the maximization of grape payment to partners typical of the cooperative model with the need to generate reserves for long-term investment (40).…”

The Wine Sector Management in Portugal: An Overview on Its Three-Dimensional Sustainability

“…About 50% or less of wine is produced by small and mediumsized producers/farmers associated in cooperatives (GPP, 2007; IVV, 2011; Rebelo & Caldas, 2015). However, as globalization and competition on the wine market increase, cooperatives lose their share in this market, because they gather small farmers/producers (about 1.6 hectare/farm), mostly male with a very low level of education and an advanced age -average age around 60 (Figueiredo & Franco, 2018;Rebelo & Caldas, 2015). Cooperatives are very resistant to change and operate based on a strong sense of belonging to the community, as well as mutual trust among their associates, where economic performance or success is not the most important factor (Figueiredo & Franco, 2018).…”

“…On the other hand, viticulture and wine processing are a branch of the agri-food industry, which significantly contributes to the devastation of the natural environment (Falcone et al, 2016;Pretty, 2008). At the same time, the agri-food market is characterized by a greater volatility of prices and income, and lower margins, due to limited government involvement and strong international competition (Rebelo & Caldas, 2015). Ecological or proenvironmental practices and green production, which resort to organic production certificates or different logos, may influence consumers' choices, offering winegrowers the possibility to differentiate their products from competitors (Castellini et al, 2017;Junquera & Barba-Sánchez, 2018;Risius et al, 2019).…”