Supply chain re-engineering: a case study of the Tonghui Agricultural Cooperative in Inner Mongolia

Abstract

Benefits of cooperative organization in agriculture come from price advantages in procurement and marketing, cost reductions and efficiency gains from sharing of productive assets and processes, and improved access to and increased efficiency in using credit, logistics, and information. Efficacy of strategic activities designed to capture these advantages is investigated empirically in a case study of the Tonghui Agricultural Cooperative in Inner Mongolia, an autonomous region of China. Information from interviews, on-site visits, evaluation of cooperative, member and partner information, and participation in the advising process are used to evaluate the impact of efforts to re-engineer the supply chain for independent farmers through cooperative organization. Specific examples of marketing channel development and operation for Wallace melons and mutton represent implementation of strategic plans. The case also reviews the cooperative’s credit system, designed increase access to and reduced cost of funds for members, use of alternative market venues, and horizontal expansion through tourism.

The Efficacy of Agricultural Cooperatives Towards Enhancing Food Security in Rural Areas: Mbombela Local Municipality, Mpumalanga Province

“…Thus, recognizing agricultural cooperatives as an organizational solution for the high transaction costs that farmers usually encounter when buying farm inputs and selling farm products which, in turn, contribute to the economic freedom of small-scale farmers and the development of the country (Thaba and Mbohwa, 2015). These cooperatives provide incentives for small agricultural producers and a wide range of services, including increased access to markets, natural resources, information, communications, technology, finance, training, and warehouses (Zhu, Wachenheim, Ma and Zhu, 2018). Agricultural cooperatives have made a positive contribution towards the rising demand for food as a means of achieving food security (Food and Agriculture Organisation, 2012).…”

The Service Supply Effect of Cooperatives under Economic Transformation: A Demand-Supply Perspective

“…Agricultural production chain involves pre-natal, mid-production and post-natal, and the service demand of farmers corresponds to the agricultural production chain [25,26]. The main features of service demand are related to periodicity and regionalism.…”