The Demutualization of a Cooperative - Swedish Meats
AbstractThis study gives a theoretical explanation to why the slaughter cooperative Swedish Meats demutualized in 2007. The hypothesis is that the problems related to the vaguely defined property rights of the cooperative raised the members’ agency costs to an extent that these costs exceeded the members’ perceived benefits from trading with the cooperative. To test this hypothesis, interviews with key stakeholders in the former Swedish Meats were conducted. The findings indicate that the problems of vaguely defined property rights made it impossible for the members to improve the cooperative’s profitability. Due to poor member governance, urgent long-term investments, for instance in marketing and product development, were not undertaken. Additionally, the persistently low profitability caused members to leave the cooperative, whereby economies of scale in the production could not be attained.
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 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114382.
Date of creation: 2011
Date of revision:
Cooperative; slaughter; vaguely defined property rights (VDPR); Agribusiness;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
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.:
- Abigail M. Hind, 1997. "The Changing Values of the Cooperative and Its Business Focus," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1077-1082.
- 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.
- Nilsson, Jerker, 2001. "Organisational principles for co-operative firms," Scandinavian Journal of Management, Elsevier, vol. 17(3), pages 329-356, September.
- Abigail M. Hind, 1999. "Co-operative Life Cycle and Goals," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 536-548.
- Nilsson, Jerker, 1997. "Inertia in Cooperative Remodeling," Journal of Cooperatives, NCERA-210, vol. 12.
- Nilsson, Jerker & Kihlen, Anna & Norell, Lennart, 2009. "Are Traditional Cooperatives an Endangered species? About Shrinking Satisfaction, Involvement and Trust," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 12(4).
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.