Why Farmers Involve Themselves in Co‐operative District Councils

Abstract

This study finds that selective incentives induce district council members and chairpersons to work for the collective best of a co-operative membership. Being the lowest echelon of a co-operative's internal governance hierarchy, district councils constitute a link between the membership and the board of directors. Previous research indicates that district council members are often driven by a co-operative conviction and social concerns. The present study challenges this view. On the basis of a survey of all 191 district council members and council chairpersons of a large Swedish agricultural co-operative, it is found that the elected representatives rank low in terms of co-operative conviction and social concerns. They involve themselves mainly in order to get personal benefits; they want to gain access to information, mature personally and obtain inputs to develop their farm enterprises. The financial compensation is of limited importance.

Social networks and member participation in cooperative governance

“…However, no study has focused specifically on the relationship between social networks and members' willingness to be elected representatives. The present study adds to the strand of research on farmers' behavior in relation to their agricultural cooperatives, and specifically to the literature on why members are motivated to engage themselves in cooperatives (Arcas‐Lario et al, 2014; Barraud‐Didier, Henninger, & Akremi, 2012; Hakelius & Hansson, 2016a, 2016b; Morfi, Nilsson, & Österberg, 2018).…”

“…In their study of district council members of a Swedish forestry cooperative, Kronholm and Wästerlund (2013, p. 426) have found that members' involvement is “primarily founded on values and tradition, which implies that replenishment occurs primarily from the traditional types of forest owners.” In an investigation of district council members in a Swedish agricultural cooperative, Morfi et al (2018) have found that members involve themselves for individualistic reasons, but these motivational factors are linked to the fact that the members act within a social context. This is the case with factors, such as the fulfillment of norms, access to information, personal development, traditions, a sense of a cooperative community, and status, as well as appreciation by fellow farmers.…”

“…Members who are elected representatives and those who want to be elected differ concerning eventual economic remunerations and other economic benefits such as access to information or good business contacts (Cechin et al, 2013, Morfi et al, 2018). The elected representatives may have social motives, including prestige and esteem from others, a feeling of doing something good, an ideological conviction, or a family tradition (Morfi et al, 2018).…”

“…The general assembly is the ultimate deciding unit. In larger cooperatives, the general assembly consists of delegates, who are elected at district assemblies to which all members are invited (Morfi et al, 2018). In small cooperatives, all members have the right to participate in a general assembly that takes place at one single venue.…”

Relational attractiveness between supplier-customer in a supply chain

“…The differences in research findings in cooperatives may be due to the conception of members of a cooperative. While some cooperatives are business-oriented, with the members' shares being tradable on the market, harsh market conditions encourage them to continue in the cooperative, but creating a more individualistic posture (Morfi et al, 2018). Other cooperatives, such as Veiling Holambra, are more focused on the common good of the members, increasing their bargaining power and allowing them to benefit from modern value chains (Hao et al, 2018).…”