Krishna Prasad Pokharel , David W Archer , Allen M Featherstone
{"title":"The Impact of Size and Specialization on the Financial Performance of Agricultural Cooperatives","authors":"Krishna Prasad Pokharel , David W Archer , Allen M Featherstone","doi":"10.1016/j.jcom.2020.100108","DOIUrl":"10.1016/j.jcom.2020.100108","url":null,"abstract":"<div><p>Agricultural cooperatives in the United States are increasing in size while decreasing in number due to consolidation. This study examines the impact of size and specialization on the mean and variance of financial performance of agricultural cooperatives using a system of equations (3SLS) approach. Return on equity is a measure of financial performance and the variance of return on equity is a measure of risk. Risk had a positive impact on the mean financial performance of the cooperatives. The impact of risk is estimated to vary based on the diversity of products handled by the cooperatives as most cooperatives received the majority of incomes from grain and farm-input sales. In addition, profitability, the debt to asset ratio, and size had positive impacts on mean financial performance. Size had a positive impact on financial performance indicating that larger agricultural cooperatives benefit from economies of scale. Diversified cooperatives, particularly small-sized cooperatives, tended to have less variability in financial performance over the 2005-2014 period.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 2","pages":"Article 100108"},"PeriodicalIF":2.1,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2020.100108","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42724418","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Exit strategies of farmer co-operatives in the United States: A competing risks analysis","authors":"Jasper Grashuis , Jason Franken","doi":"10.1016/j.jcom.2020.100119","DOIUrl":"10.1016/j.jcom.2020.100119","url":null,"abstract":"<div><p>Farmer co-operatives in the United States in general outlive other types of business organisations, yet the overall population has been declining for decades. We address the paradox with survival analysis of 2260 farmer co-operatives in the United States from 2004 through 2017. Using a competing risks scenario, we estimate the cumulative incidence of (i) mergers and acquisitions and (ii) liquidations and dissolutions in relation to demographic, financial, and strategic firm-level characteristics. We observe both expected relationships, such as the high incidence of liquidations and dissolutions in case of high leverage, as well as unexpected relationships, including the relatively high incidence of mergers and acquisitions among larger farmer co-operatives. Based on our results, we advise academics to continue to conceptualize the failure of farmer co-operatives as a multi-dimensional construct. However, we also recommend an alternative perspective of mergers and acquisitions as survival strategies as opposed to exit strategies.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 2","pages":"Article 100119"},"PeriodicalIF":2.1,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2020.100119","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49578346","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Suraiya Ishak , Ahmad Raflis Che Omar , Sarmila Md Sum , Abdullah Sanusi Othman , Juliza Jaafar
{"title":"SMALLHOLDER AGRICULTURE COOPERATIVES’ PERFORMANCE: WHAT IS IN THE MINDS OF MANAGEMENT?","authors":"Suraiya Ishak , Ahmad Raflis Che Omar , Sarmila Md Sum , Abdullah Sanusi Othman , Juliza Jaafar","doi":"10.1016/j.jcom.2020.100110","DOIUrl":"10.1016/j.jcom.2020.100110","url":null,"abstract":"<div><p>Cooperatives’ unique characteristics can lead to different ways of understanding performance. This study aims to comprehend the concept of performance within the smallholder cooperative setting and according to the pragmatic understanding of top management. This study employs a qualitative research design that involves structured interviews with representatives of each studied cooperative’s board. Six informants were selected through a purposive sampling method. The findings indicate that the definition of performance revolves around the dimensions of efficiency (i.e. doing things right) and effectiveness (i.e. doing the right things). This operationalisation of the dimensions fits with the identity of cooperatives. Smallholders’ cooperative performance is summarised as the ability to conduct the process of basic management tasks in an efficient and effective manner as well as conform to the expectations of its members. The originality of this study lies in its attempt to investigate the concept of performance using the pragmatic understanding of top management in line with the mental model. The findings add value to the current literature on organisational performance (OP), offering fresh insights derived from a practical point of view that take into consideration the nature of cooperative entities.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 2","pages":"Article 100110"},"PeriodicalIF":2.1,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2020.100110","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41703872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kifle T. Sebhatu , Tafesse W. Gezahegn , Tekeste Berhanu , Miet Maertens , Steven Van Passel , Marijke D’Haese
{"title":"Conflict, fraud, and distrust in Ethiopian agricultural cooperatives","authors":"Kifle T. Sebhatu , Tafesse W. Gezahegn , Tekeste Berhanu , Miet Maertens , Steven Van Passel , Marijke D’Haese","doi":"10.1016/j.jcom.2020.100106","DOIUrl":"10.1016/j.jcom.2020.100106","url":null,"abstract":"<div><p>Agricultural cooperatives are seen as an efficient way for smallholder farmers to create bargaining power in order to achieve poverty reduction and food security. However, the success of these cooperatives depends on their ability to maintain their social capital, which is at the core of collective action. A few studies have addressed issues of member participation, commitment, and trust, yet less is known about rural cooperatives in developing countries as a social organization. It is also unclear whether a relationship exists between cooperative size and the incidence of conflict, fraud, and distrust. Using unique data collected from 511 agricultural cooperatives in 12 districts of Tigray region in northern Ethiopia, this paper examines the effects of cooperative size on conflict, fraud, and distrust. We used instrumental variables (IV) probit estimation techniques, accounting for endogeneity of membership size, to confirm that cooperative size does affect the occurrence of conflict, fraud, and trust. The results also indicate that other influencing factors include: cooperative age, number of employees, payment of dividends based on transaction volume, and heterogeneity of member goals.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 1","pages":"Article 100106"},"PeriodicalIF":2.1,"publicationDate":"2020-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2020.100106","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43692830","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maya Sultana , Junayed Uddin Ahmed , Yoshiharu Shiratake
{"title":"Sustainable conditions of agriculture cooperative with a case study of dairy cooperative of Sirajgonj District in Bangladesh","authors":"Maya Sultana , Junayed Uddin Ahmed , Yoshiharu Shiratake","doi":"10.1016/j.jcom.2019.100105","DOIUrl":"10.1016/j.jcom.2019.100105","url":null,"abstract":"<div><p>There are many cooperatives in Bangladesh but most of the cooperatives are not working in the long run. After completion of the project time these cooperatives also finished. In this context, this study shows sustainable conditions of cooperative in the dairy sector of Bangladesh. The study analyses the conditions of dairy farmers in Bangladesh whom are members and not members of the agriculture cooperative with a case study. For the study, a simple random sampling procedure was applied to collect primary data from Sirajgonj district, northwest of Dhaka, where the primary milk producer’s cooperative was established for integrated marketing. Descriptive analysis was used to analyze the data in the study. The cooperative society assured secured market for farmers’ production at a fair price and provides technical assistance through training and extension services that lead the higher production and higher income for the farmers. Motivated farmers showed positive behavior towards society in the long run. These conditions may help to sustain the cooperative society in another sector of agriculture in Bangladesh. Therefore, intervention should be taken for strengthening and expanding sustainable agriculture cooperatives in all sectors of Bangladesh.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 1","pages":"Article 100105"},"PeriodicalIF":2.1,"publicationDate":"2020-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2019.100105","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47699006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Leandro Pereira dos Santos , Carla Maria Schmidt , Dagmar Mithöfer
{"title":"Impact of Collective Action Membership on the Economic, Social and Environmental Performance of Fruit and Vegetable Farmers in Toledo, Brazil","authors":"Leandro Pereira dos Santos , Carla Maria Schmidt , Dagmar Mithöfer","doi":"10.1016/j.jcom.2020.100107","DOIUrl":"10.1016/j.jcom.2020.100107","url":null,"abstract":"<div><p>This article analyzes the impact of participation in collective actions on the economic, social and environmental sustainability of fruit and vegetable farmers in the microregion of Toledo, Brazil. Through cross-sectional data analysis, we use a regression adjustment with the inverse probability weighted to estimate the average treatment effect on the treated. The results show a positive impact on sustainability indicators. However, there is a stronger impact economically than socially or environmentally. These findings suggest that participation in collective action can be an important strategy for farmers, as it reduces transaction costs and allows for greater access to information and knowledge, thus improving farmers’ sustainability.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 1","pages":"Article 100107"},"PeriodicalIF":2.1,"publicationDate":"2020-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2020.100107","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47877804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Factors influencing membership of dairy cooperatives: Evidence from dairy farmers in Thailand","authors":"Thitiya Jitmun , John K.M. Kuwornu , Avishek Datta , Anil Kumar Anal","doi":"10.1016/j.jcom.2020.100109","DOIUrl":"10.1016/j.jcom.2020.100109","url":null,"abstract":"<div><p>This study assessed the factors determining farmers’ membership of dairy cooperatives in Thailand using primary data acquired from 385 randomly selected dairy farmers in central and north-eastern regions of Thailand. Two types of farmers were surveyed: members of dairy cooperatives and members of private organizations representing the two key marketing channels. The results of the binary logit regression model showed that educational level, dairy farming experience, herd size and distance to the milk collecting centres had positive significant influence whereas the square of the herd size and monthly payment period had negative significant influence on farmers’ membership of the cooperatives. The policy recommendations are presented.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"8 1","pages":"Article 100109"},"PeriodicalIF":2.1,"publicationDate":"2020-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2020.100109","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41923024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Co-operatives exhibit greater behavioral cooperation than comparable businesses: Experimental evidence","authors":"Ethan Tremblay , Afton Hupper , Timothy M. Waring","doi":"10.1016/j.jcom.2019.100092","DOIUrl":"10.1016/j.jcom.2019.100092","url":null,"abstract":"<div><p>Cooperatives as can be presumed to rely on the economic cooperation of their members. However, game-theoretic and institutional models suggest that cooperatives may be inherently fragile due to the individual costs of cooperation. Because of this it is widely believed that organizations which rely less on cooperation may be more stable, while organizations that require cooperation may be at higher risk of folding. Therefore, if cooperatively owned or managed businesses do in fact require higher levels of prosocial and cooperative behavior than hierarchically managed firms, they must attract and maintain cooperation among participants in order to function. We hypothesized that successful consumer food cooperatives will exhibit greater generalized cooperation than conventional grocery stores. We employed an experimental dictator game to measure altruistic cooperation among consumers at a food cooperative and a comparable conventional grocery. Cooperative customers exhibit a higher base rate of cooperation than similar conventional shoppers, and this relationship holds even when taking demographic factors such as income, education, and age into account. We conclude that, when successful, consumer cooperatives exhibit greater levels of cooperation than comparable traditional businesses.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"7 2","pages":"Article 100092"},"PeriodicalIF":2.1,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2019.100092","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41353046","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The reserve fund: Is it a necessary anchor for a successful cooperative?","authors":"Zvi Galor, Michael Sofer","doi":"10.1016/j.jcom.2019.100089","DOIUrl":"10.1016/j.jcom.2019.100089","url":null,"abstract":"<div><p>A significant number of cooperatives in the world have a reserve fund. Among cooperative members and leaders as well as researchers, a reserve fund is considered as an indispensable tool for the maintenance and success of the organisation. This article analyses the essence of reserve funds and their operation. It is demonstrated that the existence of this specific fund constitutes a deterioration in the quality of service provided by the cooperative to its members. It is suggested that the absence of reserve funds in a cooperative leads to an increase in the quality of service provided to members. Two case studies of rural primary cooperatives (moshavim) and one of secondary cooperatives (regional purchasing organizations) in Israel are presented. These associations have been operating successfully for a number decades without profit or deficit and do not maintain reserve funds. The cooperatives are founded by and for members who want to pay the lowest possible cost of participation, and the case studies demonstrate that they can operate efficiently and stably over time without relying on reserve funds.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"7 2","pages":"Article 100089"},"PeriodicalIF":2.1,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2019.100089","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45585692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cooperatives governing energy infrastructure: A case study of Berlin’s grid","authors":"Zofia Łapniewska","doi":"10.1016/j.jcom.2019.100094","DOIUrl":"10.1016/j.jcom.2019.100094","url":null,"abstract":"<div><p>At present, as energy security has become one of the highest priorities discussed globally, swift social, ecological and economic changes in the energy market are taking place. In many countries, local cooperatives have been established that intend, among other goals, to purchase power grids and increase renewable energy production. This paper presents the outcomes of a research project devoted to one specific case – BürgerEnergie Berlin (BEB). This cooperative, which is bidding for a twenty-year concession to the Berlin power grid (the biggest in Germany), intends to modernise it after the purchase in order to change it into a smart grid and enable a number of local renewable sources to connect to it. A key success factors model for this cooperative – based on field studies and the use of inductive reasoning – is the original contribution to existing research on energy cooperatives. The presented qualitative analysis, taking into account the details of the process of bidding for the concession, can be an inspiration to cooperative researchers and practitioners and a contribution to a future discussion on alternative solutions to the issues of public utilities ownership and their management.</p></div>","PeriodicalId":43876,"journal":{"name":"Journal of Co-operative Organization and Management","volume":"7 2","pages":"Article 100094"},"PeriodicalIF":2.1,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.jcom.2019.100094","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44379543","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}