Abstract:The importance of cooperatives for European farmers has often been claimed but empirical studies to support this claim are scarce. This special issue presents a number of articles on the recent development and status of agricultural cooperatives in the European Union, based on original data collected in the EU-wide study 'Support for Farmers' Cooperatives'. The articles focus on trends in the internal organization, the institutional environment, and the strategies that cooperatives have developed in supply cha… Show more
“…Although a fair proportion of primary production sectors in the EU is organized in cooperatives (e.g. cereals 35%, dairy over 50%, pork 25%) these cooperatives increasingly act similarly to normal multinationals, focusing on cost price reduction rather than sustainability (Bijman et al 2012). An important step is to create premium certificates for intermediate production systems and products between conventional and more sustainable products with regard to animal welfare and the use of chemical inputs (Paarlberg 2013).…”
“…Although a fair proportion of primary production sectors in the EU is organized in cooperatives (e.g. cereals 35%, dairy over 50%, pork 25%) these cooperatives increasingly act similarly to normal multinationals, focusing on cost price reduction rather than sustainability (Bijman et al 2012). An important step is to create premium certificates for intermediate production systems and products between conventional and more sustainable products with regard to animal welfare and the use of chemical inputs (Paarlberg 2013).…”
“…For example, Hagedorn (2014) shows that trust among members, constructive communication regarding their problems and ideas, good leaders, and formal regulations for encouraging the cooperatives' development are important requirements for building sustainable cooperatives. Therefore, as discussed in Bijman and Iliopoulos (2014), a future research is necessary to verify the factors and characteristics required for agricultural cooperatives to perform well, not just the single criterion that was considered in this paper.…”
Th e cooperative movement in Poland has a long but diffi cult history, which has caused farmers to have an aversion to cooperatives. Nonetheless, in the early 1990s, the fi rst farmers' cooperative marketing organizations, which were called agricultural producer groups, appeared in the market. Th ese groups are bottom-up, voluntary organizations the primary purpose of which is to jointly sell their members' output. In this paper, it is investigated why the new forms of governance, namely cooperative arrangements, were chosen, and we evaluate the implications of these choices on the market success of these groups. Empirical data were collected from 62 producer groups in one Polish province. We found that the groups were typically functioning as associations, unions, and limited liability companies. Th e factors that had an impact on the choices made were the number of members and the specifi c investment per member. Additionally, if the initial investment level was low, not only set-up and operational costs but also tax considerations played a role in the decision. Th erefore, we argue that the new bottom-up cooperatives, which are theoretically suitable when the start-up capital is high or the number of members is large, will gradually be recognized and accepted in the market despite the fact that these cooperatives have a "bad reputation" caused by the socialist legacy. Th e new cooperative development trend confi rms this argument.
“…3 On the other hand, direct selling is a serious concern for some marketing cooperatives managers. Indeed, in a context where membership and loyalty are threatened (USDA, 2002;Bond, 2006;Bijman & Verhees, 2011;Mujawamariya et al, 2013), cooperatives increasingly question the pertinence of allowing their members to sell directly to consumers. Specifically, marketing cooperatives fear that they may not be able sustain the stock required for their activity if members are engaged in direct selling.…”
We build a theoretical model to study a market structure of a marketing cooperative with direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on a local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. Conversely, direct selling may create a "healthy emulation" among farmers, leading to more production benefiting the cooperative.
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