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Measuring X-Efficiency And Scale Efficiency For A Sample Of Agricultural Cooperatives

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  • Ariyaratne, Chatura B.
  • Featherstone, Allen M.
  • Langemeier, Michael R.
  • Barton, David G.

Abstract

This paper examines the efficiency of a sample of Great Plains grain marketing and farm supply cooperatives during 1988 to 1992. In general, larger cooperatives were more X-efficient and scale efficient. Labor tended to be under-utilized and capital over-utilized. Petroleum product sales and fertilizer sales were negatively related to overall efficiency. Sales of goods other than grain, fertilizers, agricultural chemicals, petroleum products, and feed was positively related to overall efficiency. Overall efficiency was significantly correlated with the rate of return to assets.

Suggested Citation

  • Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R. & Barton, David G., 2000. "Measuring X-Efficiency And Scale Efficiency For A Sample Of Agricultural Cooperatives," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(2), pages 1-10, October.
    • Handle: RePEc:ags:arerjl:31310
    DOI: 10.22004/ag.econ.31310
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    1. Thraen, Cameron S. & Hahn, David E. & Roof, James B., 1987. "Processing Costs, Labor Efficiency, and Economies of Size in Cooperatively Owned Fluid Milk Plants," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 2, pages 1-17.
    2. Ted C. Schroeder, 1992. "Economies of Scale and Scope for Agricultural Supply and Marketing Cooperatives," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(1), pages 93-103.
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    4. Joseph W. Meador & Harley E. Ryan Jr., 1997. "Product Focus versus Diversification: Estimates of X-Efficiency for the US Life Insurance Industry," Center for Financial Institutions Working Papers 97-16, Wharton School Center for Financial Institutions, University of Pennsylvania.
    5. Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R. & Barton, David G., 1997. "An Analysis of Efficiency of Midwestern Agricultural Cooperatives," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35763, Western Agricultural Economics Association.
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    Cited by:

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    2. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    3. Kozo Harimaya & Koichi Kagitani, 2022. "Efficiency, and economies of scale and scope in Japanese agricultural cooperatives," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-19, December.
    4. Liang Chi & Mengshuai Zhu & Chen Shen & Jing Zhang & Liwei Xing & Xiangyang Zhou, 2023. "Does the Winner Take All in E-Commerce of Agricultural Products under the Background of Platform Monopoly?," Agriculture, MDPI, vol. 13(2), pages 1-16, February.
    5. Hailu, Getu & Goddard, Ellen W. & Jeffrey, Scott R., 2005. "Measuring Efficiency in Fruit and Vegetable Marketing Co-operatives with Heterogeneous Technologies in Canada," 2005 Annual meeting, July 24-27, Providence, RI 19507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Sebhatu, Kifle T. & Gezahegn, Tafesse W. & Berhanu, Tekeste & Maertens, Miet & Passel, Steven Van & D'Haese, Marijke, 2021. "Exploring variability across cooperatives: economic performance of agricultural cooperatives in northern Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    7. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    8. Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R., 2006. "What Determines Productivity Growth of Agricultural Cooperatives?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(1), pages 47-59, April.
    9. Pinto, Claudio, 2020. "Fuzzy DEA models for sports data analysis: The evaluation of the relative performances of professional (virtual) football teams," MPRA Paper 103129, University Library of Munich, Germany.
    10. Yu, L. & Huang, W., 2018. "Non-economic societal impact or economic revenue? Performance and efficiency analysis of farmer cooperatives in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277512, International Association of Agricultural Economists.
    11. Drebee, Hayder Abbas & Abdul Razak, Nor Azam, 2018. "Measuring the Efficiency of Colleges at the University of Al-Qadisiyah-Iraq: A Data Envelopment Analysis Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 153-166.
    12. Pokharel, Krisha Prasad & Featherstone, Allen M. & Archer, David W., 2019. "Estimating Economic Efficiency Under Risk For Agricultural Cooperatives," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 7(2), April.
    13. Pokharel, Krishna P & Featherstone, Allen M, 2016. "A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236182, Agricultural and Applied Economics Association.
    14. Kuhle Prudence Mnisi & Abdul Latif Alhassan, 2021. "Financial structure and cooperative efficiency: A pecking‐order evidence from sugarcane farmers in Eswatini," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 261-281, June.
    15. Grashuis Jasper, 2020. "The Competitive Impact of Cooperatives on the Spot Market: A Spatial Analysis of Iowa Corn Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 18(2), pages 1-11, November.
    16. Barton, David G., 2004. "A Comparison of Traditional and Newly Emerging Forms of Cooperative Capitalization," 2004 Annual Meeting, November 2-3 31794, NCERA-194 Research on Cooperatives.
    17. Kondo, Katsunobu & Yamamoto, Yasutaka & Sasaki, Jun, 2008. "Measuring Total Factor Productivity Change for Agricultural Cooperatives in Japan: A Nonparametric Malmquist Indices Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 36(2), pages 1-13.
    18. Rafat A. M. E. Soboh & Alfons Oude Lansink & Gerard Giesen & Gert van Dijk, 2009. "Performance Measurement of the Agricultural Marketing Cooperatives: The Gap between Theory and Practice," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 446-469.
    19. Theodoros Skevas & Jasper Grashuis, 2020. "Technical efficiency and spatial spillovers: Evidence from grain marketing cooperatives in the US Midwest," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 111-126, January.

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