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The New Zealand Dairy Cooperatives’ Adaptation to Changing Market Conditions

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  • Nilsson, Jerker
  • Ohlsson, Camilla
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    Abstract

    This article examines the market conditions, the strategies, and the organizational structures of agricultural cooperatives. Based on the growing literature on cooperative organizational models, it is expected that the new organizational patterns in the New Zealand dairy cooperatives in the early 2000s are a consequence of market changes. Case studies of the three cooperatives are conducted, focusing on the organizational structures in terms of collective versus individualized attributes. The dissolution of the New Zealand Dairy Board created new market opportunities for the cooperatives. Hence, the co-operatives had reason to develop new market strategies, and in order to pursue these well, they changed their organizational structures. The observations indicate that more liberalized and open markets require cooperative organizational models with more individualized traits.

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    File URL: http://purl.umn.edu/59553
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    Bibliographic Info

    Article provided by Hebrew University, Center for Agricultural Economic Research in its journal Journal of Rural Cooperation.

    Volume (Year): 35 (2007)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:jlorco:59553

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    Keywords: Cooperative; Dairy; New Zealand; Fonterra; Market strategy; Organizational model; Agribusiness; Livestock Production/Industries;

    References

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    1. Stefanson, Brenda & Fulton, Murray E. & Harris, Andrea, 1995. "New Generation Co-Operatives: Rebuilding Rural Economies," Miscellaneous Publications 31751, University of Saskatchewan, Centre for the Study of Co-operatives.
    2. Kyriakos Kyriakopoulos & Matthew Meulenberg & Jerker Nilsson, 2004. "The impact of cooperative structure and firm culture on market orientation and performance," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 379-396.
    3. Fabio R. Chaddad & Michael L. Cook, 2004. "Understanding New Cooperative Models: An Ownership–Control Rights Typology," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 348-360.
    4. William D. Dobson, 1990. "The competitive strategy of the New Zealand dairy board," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 541-558.
    5. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
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