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Determinants of Commitment to Agricultural Cooperatives: Cashew Nuts Farmers in Benin

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  • Mensah, Edouard R.
  • Karantininis, Kostas
  • Adegbidi, Anselme
  • Okello, Julius Juma

Abstract

Forming and using cooperatives as marketing channel is usually advised to African smallholder farmers for overcoming the constraint of market access. However, limited evidence of cooperative behavior in marketing has been observed. In this paper, we estimate a two-stage model of commitment to cooperatives by cashew nut farmers in Benin, West Africa. In the first stage, we use data on 109 non-members and 168 members and estimate a binary Logit model of farmer’s discrete choice with respect to committing to membership. In the second stage, we use the members’ data to estimate a Tobit model of the proportion of produce delivered to the cooperative, after controlling for the endogeneity of the proportion of presales. Empirical results reveal that the commitment to membership depends on the assessment of prices offered by the marketing channels, the farmer’s preferences for the specific attributes of the channels, the total farm size, and some psycho-sociological factors; the commitment to business depends on prices and transaction costs in the channels. Our findings call cooperatives for improving commitment by considering the subjective and economic reasoning of the farmers, and setting formal contracts between members and their organization.

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  • Mensah, Edouard R. & Karantininis, Kostas & Adegbidi, Anselme & Okello, Julius Juma, 2012. "Determinants of Commitment to Agricultural Cooperatives: Cashew Nuts Farmers in Benin," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125946, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:125946
    DOI: 10.22004/ag.econ.125946
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    3. Jiri Hejkrlik & Petra Chaloupkova & Tetyana Sokolska, 2023. "The role of transformational leadership and leaders’ skills for new agricultural cooperatives in post‐soviet countries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(1), pages 109-129, March.
    4. Dinesh Dhakal & David O’Brien & Peter Mueser, 2021. "Government Policy and Performance of Agricultural Cooperatives: A Case Study in Chitwan District, Nepal," Sustainability, MDPI, vol. 13(21), pages 1-20, November.
    5. Etongo, Daniel & Djenontin, Ida Nadia S. & Kanninen, Markku & Fobissie, Kalame & Korhonen-Kurki, Kaisa & Djoudi, Houria, 2015. "Land tenure, asset heterogeneity and deforestation in Southern Burkina Faso," Forest Policy and Economics, Elsevier, vol. 61(C), pages 51-58.
    6. Solomon Bizuayehu Wassie & Kusakari, Hitoshi & Sumimoto, Masahiro, 2020. "Do Members Commit to Their Cooperatives? An Econometric Analysis of Members' Commitment in Ethiopia," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
    7. Donald M. Houessou & Ben G. J. S. Sonneveld & Augustin K. N. Aoudji & Frejus S. Thoto & Smith A. R. Dossou & Denyse J. R. M. Snelder & Anselme A. Adegbidi & Tjard De Cock Buning, 2019. "How to Transition from Cooperations to Cooperatives: A Case Study of the Factors Impacting the Organization of Urban Gardeners in Benin," Sustainability, MDPI, vol. 11(17), pages 1-25, August.
    8. Chrysoula Morfi & Jerker Nilsson & Karin Hakelius & Kostas Karantininis, 2021. "Social networks and member participation in cooperative governance," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 264-285, April.
    9. Henry Mendoza-Crespo & Mauricio Ortiz-Velásquez, 2020. "Importancia y determinantes de la asociación productiva agrícola: el cultivo de name en el caribe colombiano," Revista Sociedad y Economía, Universidad del Valle, CIDSE, issue 41, pages 88-118, July.
    10. 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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    Agribusiness; Industrial Organization; Institutional and Behavioral Economics; Marketing;
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