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The Hidden Impact of Cooperative Membership on Quality Management: A Case Study from the Dairy Belt of Addis Ababa

Author

Listed:
  • Gian Nicola Francesconi

    (International Food Policy Research Institute)

  • Ruerd Ruben

    (University of Nijmegen)

Abstract

During the last decade Ethiopia has been witnessing a return to agricultural cooperatives as means to unleash the national agri-food market. Using primary bio-economic data from Ethiopia, this study evaluates the impact of cooperative membership on milk production, productivity, quality and safety. To do so we compare the performance of cooperative and individual milk farmers sampled from the dairy belt of Addis Ababa. We use both instrumental variable regression and propensity score matching methods to control for pre-existing differences between the two groups of farmers and isolate the “cooperative impact”. Findings are consistent across the two methods in suggesting that cooperative membership has a positive impact on milk production and productivity, no significant effect on milk hygiene and a negative impact on milk quality. The study concludes with implications for policy and for further research.

Suggested Citation

  • Gian Nicola Francesconi & Ruerd Ruben, 2012. "The Hidden Impact of Cooperative Membership on Quality Management: A Case Study from the Dairy Belt of Addis Ababa," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 85-103, December.
    • Handle: RePEc:trn:csnjrn:v:1:i:1:p:85-103
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    2. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.
    3. Liyan Yu & Jerker Nilsson & Feng Zhan & Song Cheng, 2023. "Social Capital in Cooperative Memberships and Farmers’ Access to Bank Credit–Evidence from Fujian, China," Agriculture, MDPI, vol. 13(2), pages 1-18, February.
    4. Aristotelis Batzios & Achilleas Kontogeorgos & Fotios Chatzitheodoridis & Panagiota Sergaki, 2021. "What Makes Producers Participate in Marketing Cooperatives? The Northern Greece Case," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    5. Delelegne Abera Tefera & Jos Bijman & Maja Slingerland & Gerben Velde & Onno Omta, 2020. "Quality Improvement in African Food Supply Chains: Determinants of Farmer Performance," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(1), pages 152-175, January.
    6. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    7. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    8. Mojo, Dagne & Fischer, Christian & Degefa, Terefe, 2015. "Who benefits from collective action? Determinants and economic impacts of coffee farmer cooperatives in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211889, International Association of Agricultural Economists.
    9. Oke, FO & Kareem, IA & Bamigbade-Sanni, SA & Akerele, D & Oose, MO, 2023. "Impact Assessment Of Cooperatives On Food Security Among Catfish Farming Households In Oyo State, Nigeria," African Journal of Food, Agriculture, Nutrition and Development (AJFAND), African Journal of Food, Agriculture, Nutrition and Development (AJFAND), vol. 23(4), January.
    10. Niranjala Hulugalla & Kyohei Yamada & Makoto Kakinaka, 2021. "Personal social capital and voluntary participation in the Village Development Programme in rural Sri Lanka," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 803-825, July.
    11. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    12. Adjin, K. Christophe & Goundan, Anatole & Henning, Christian H. C. A. & Sarr, Saer, 2020. "Estimating the impact of agricultural cooperatives in Senegal: Propensity score matching and endogenous switching regression analysis," Working Papers of Agricultural Policy WP2020-10, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    13. Adjin, K. Christophe & Henning, Christian H. C. A., 2019. "Farmers organizations and food availability in Senegal: An impact analysis using a spatial econometrics approach," Working Papers of Agricultural Policy WP2019-07, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    14. Meiyuan Wang & Bin He & Jinsong Zhang & Yanan Jin, 2021. "Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
    15. Renata Serra & Kelly A. Davidson, 2021. "Selling Together: The Benefits of Cooperatives to Women Honey Producers in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 202-223, February.

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    More about this item

    Keywords

    Ethiopia; Milk; Cooperatives; Impact; Instrumental Variable Regression; Propensity Score Matching;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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