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Evaluation of Factors Affecting the Choice of Pricing and Payment Practices by Traditional Marketing and New Generation Cooperatives

Author

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  • Gurung, Rajendra Kumar
  • Unterschultz, James R.

Abstract

Questionnaires were mailed to cooperatives in the mid-western states of the U.S. and selected provinces in Canada to evaluate the impact of type of organization and level of competition on the choice of cooperative pricing and payment methods. Traditional marketing cooperatives are more likely to choose the “spot market cash price” for payment to members and are more responsive to increased competition in commodity markets. New Generation Cooperatives are more likely to choose a “pooled” price, and appeared indifferent to short run increased competition in commodity markets. The type of cooperative has an impact on the pricing and payment methods used to pay for commodities supplied by members of the cooperative. The reasons for these differences may be rooted in the competitive pressures which these cooperatives face, the degree of processing that they undertake, and the goals of their membership.

Suggested Citation

  • Gurung, Rajendra Kumar & Unterschultz, James R., 2007. "Evaluation of Factors Affecting the Choice of Pricing and Payment Practices by Traditional Marketing and New Generation Cooperatives," Journal of Cooperatives, NCERA-210, vol. 20, pages 1-17.
  • Handle: RePEc:ags:jlcoop:46579
    DOI: 10.22004/ag.econ.46579
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    Cited by:

    1. Marco Fazzini & Antonella Russo, 2014. "Profitability in the Italian Wine Sector: An Empirical Analysis of Cooperatives and Investor-Owned Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 130-137, July.
    2. Nikulin, Alexander (Никулин, Александр) & Sobolev, Alexander (Соболев, Александр) & Trotsuk, Irina (Троцук, Ирина) & Kurakin, Alexander (Куракин, Александр), 2017. "Russian Agricultural Cooperatives: Regional Features, Economic Behavior, Management and Development Models [Российские Сельскохозяйственные Кооперативы: Региональные Особенности, Экономическое Пове," Working Papers 061714, Russian Presidential Academy of National Economy and Public Administration.

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    Keywords

    Agribusiness;

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