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Effort, Technology and the Efficiency of Agricultural Cooperatives

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  • Seung C. Ahn
  • Josef C. Brada
  • Jos� A. M�ndez

Abstract

The inefficiency of cooperative agriculture relative to private farms is often attributed to difficulties in monitoring or poor incentives. We develop a model to show that, in technologies with numerous sequential steps, even small shortfalls in worker effort can result in large output declines. Using data on cooperative and private farms in El Salvador, we find greater shortfalls in efficiency between cooperatives and private farms, as well as among cooperatives, for coffee, a crop requiring numerous steps in its cultivation, than for maize and sugar, which require fewer steps. Thus the undersupply of effort in cooperatives may be less than differences in productivity suggest, and cooperative agriculture is most likely to be successful where production does not involve many sequential steps.

Suggested Citation

  • Seung C. Ahn & Josef C. Brada & Jos� A. M�ndez, 2012. "Effort, Technology and the Efficiency of Agricultural Cooperatives," Journal of Development Studies, Taylor & Francis Journals, vol. 48(11), pages 1601-1616, November.
    • Handle: RePEc:taf:jdevst:v:48:y:2012:i:11:p:1601-1616
    DOI: 10.1080/00220388.2012.709613
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    References listed on IDEAS

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    1. Lerman, Zvi & Ruben, Ruerd, 2005. "Why Nicaraguan Peasants Remain in Agricultural Production Cooperatives," 2005 Annual meeting, July 24-27, Providence, RI 19243, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Saioa Arando & Fred Freundlich & Monica Gago & Derek C. Jones & Takao Kato, 2010. "Assessing Mondragon: Stability & Managed Change in the Face of Globalization," William Davidson Institute Working Papers Series wp1003, William Davidson Institute at the University of Michigan.
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    Cited by:

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    2. Yang Zou & Qingbin Wang, 2022. "Impacts of farmer cooperative membership on household income and inequality: Evidence from a household survey in China," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-17, December.
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    4. 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.
    5. 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.
    6. Yagi, Hironori & Hayashi, Tsuneo, 2021. "Working conditions and labor flexibility in non-family farms: weather-based labor management by Japanese paddy rice corporations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), February.

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