Marketing Cooperative vs Producer's Agent: The Turkish Dilemma in Modern FFV Market
AbstractSince the rapid expansion of modern retailers in Turkish agro-food market, competent intermediary's forms are required to match up their exigent demand in fresh fruit and vegetables (thereafter FFV) procurement - namely, volume, regularity or quality- with a very fragmented national supply provided by small family farms. In this context, the aim of this paper is twofold: it first develops a unified theoretical framework that compares the costs incurred by producers when deciding to market their produce through a private agent or through a marketing cooperative. Drawing on marketing cooperatives theories and transaction cost arguments, we put forward that these systems do not prove the same ability to allow for quality upgrading, above all at the producer's level. Second, we analyze on this basis the recent evolution of the FFV sector in Turkey: the Turkish Wholesale Market Law enacted 1995 establishes commission producer's agents on FFV wholesale market halls who effectively collect an atomized supply and guarantee the access of small producers to large scale markets. Moreover, the simultaneous attempt to promote traditional cooperatives as alternative channels turns out to be less successful: small size, lack of funding and skill shortage hampered their development. However, public authorities recently promote the emergence of new types of marketing cooperatives whose initial endowment in capital and technical skills is high. The latter progressively turn to offensive strategies of quality upgrading and market access to new opportunities, whereby they have to set screening rules marginalizing small and vulnerable producers in order to achieve this goal. In our view, this evolution in the governmental intervention illustrates a determinant trade-off faced by the public authorities: namely, the choice between assuring the inclusion of the major part of producers in the market and boosting productivity and quality upgrading at the production level for more demanding markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 103rd Seminar, April 23-25, 2007, Barcelona, Spain with number 9405.
Date of creation: 2007
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Liesbeth Dries & Thomas Reardon & Johan F. M. Swinnen, 2004. "The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 525-556, 09.
- Bontems, P. & Fulton, M., 2005. "Organizational structure and the endogeneity of cost : cooperatives, for-profit firms and the cost of procurement," Economics Working Paper Archive (Toulouse) 200507, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse).
- Sexton, Richard J. & Iskow, Julie, 1988. "Factors Critical to the Success or Failure of Emerging Agricultural Cooperatives," Information Series 11921, University of California, Davis, Giannini Foundation.
- Porter, Philip K & Scully, Gerald W, 1987. "Economic Efficiency in Cooperatives," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 489-512, October.
- Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.