IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/211889.html
   My bibliography  Save this paper

Who benefits from collective action? Determinants and economic impacts of coffee farmer cooperatives in Ethiopia

Author

Listed:
  • Mojo, Dagne
  • Fischer, Christian
  • Degefa, Terefe

Abstract

Using household survey data gathered from 305 Ethiopian coffee farmers, the determinants and impacts of cooperative membership are explored. A logit model results reveal that the probability of farmers’ membership decision increases with age, education level, family size, and land property. Employing propensity score matching (PSM), no unique membership impact on members’ economic performance and output are found. However, cooperatives have a positive economic benefit to the whole community (members and nonmembers), regardless of membership. The results suggest a need for a mechanism to improve members’ benefits to make cooperatives more meaningful, attractive and sustainable.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:iaae15:211889
    DOI: 10.22004/ag.econ.211889
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/211889/files/Yadate-Who%20benefits%20from%20collective%20action%20Determinants%20and%20economic%20impact-103.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.211889?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pradyot Ranjan Jena & Bezawit Beyene Chichaibelu & Till Stellmacher & Ulrike Grote, 2012. "The impact of coffee certification on small-scale producers’ livelihoods: a case study from the Jimma Zone, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 429-440, July.
    2. Chibanda, M. & Ortmann, Gerald F. & Lyne, Michael C., 2009. "Institutional and governance factors influencing the performance of selected smallholder agricultural cooperatives in KwaZulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-14, September.
    3. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    4. Royer, Jeffrey S., 1999. "Cooperative Organizational Strategies: A Neo-Institutional Digest," Journal of Cooperatives, NCERA-210, vol. 14, pages 1-24.
    5. Bernard, Tanguy & Gabre-Madhin, Eleni Z. & Taffesse, Alemayehu Seyoum, 2008. "Heterogeneous Impacts Of Cooperatives On Smallholders’ Commercialization Behavior: Evidence From Ethiopia," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52161, African Association of Agricultural Economists (AAAE).
    6. Kindie GETNET & Tsegaye ANULLO, 2012. "Agricultural Cooperatives And Rural Livelihoods: Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(2), pages 181-198, June.
    7. Carolyn Heinrich & Alessandro Maffioli & Gonzalo Vázquez, 2010. "A Primer for Applying Propensity-Score Matching," SPD Working Papers 1005, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
    8. Yuheng Li, 2013. "Agricultural Cooperatives for Urban-rural Interaction in China," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2013(1), pages 29-37.
    9. Peter Helmberger & Sidney Hoos, 1962. "Cooperative Enterprise and Organization Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(2), pages 275-290.
    10. James J. Heckman, 2008. "Econometric Causality," International Statistical Review, International Statistical Institute, vol. 76(1), pages 1-27, April.
    11. Ermanno C. Tortia & Vladislav Valentinov & Constantine Iliopoulos, 2013. "Agricultural cooperatives," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 23-36, May.
    12. Jerker Nilsson & Gunnar L.H. Svendsen & Gert Tinggaard Svendsen, 2012. "Are Large and Complex Agricultural Cooperatives Losing Their Social Capital?," Agribusiness, John Wiley & Sons, Ltd., vol. 28(2), pages 187-204, March.
    13. Elder, Sara D. & Zerriffi, Hisham & Le Billon, Philippe, 2012. "Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers," World Development, Elsevier, vol. 40(11), pages 2355-2367.
    14. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    15. Bernard, Tanguy & Spielman, David J. & Seyoum Taffesse, Alemayehu & Gabre-Madhin, Eleni Z., 2010. "Cooperatives for staple crop marketing: Evidence from Ethiopia," Research reports 164, International Food Policy Research Institute (IFPRI).
    16. Bonin, John P & Jones, Derek C & Putterman, Louis, 1993. "Theoretical and Empirical Studies of Producer Cooperatives: Will Ever the Twain Meet?," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1290-1320, September.
    17. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    18. Sexton, Richard J., 1995. "A Perspective on Helmberger and Hoos' Theory of Cooperatives," Journal of Cooperatives, NCERA-210, vol. 10, pages 1-8.
    19. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    20. Godtland, Erin M & Sadoulet, Elisabeth & De Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2004. "The Impact of Farmer Field Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 63-92, October.
    21. repec:ilo:ilowps:446712 is not listed on IDEAS
    22. Nilsson, Jerker, 2001. "Organisational principles for co-operative firms," Scandinavian Journal of Management, Elsevier, vol. 17(3), pages 329-356, September.
    23. Gashaw Tadesse ABATE & Gian Nicola FRANCESCONI & Kindie GETNET, 2014. "Impact Of Agricultural Cooperatives On Smallholders’ Technical Efficiency: Empirical Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 257-286, June.
    24. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
    25. Michael L. Cook, 1995. "The Future of U.S. Agricultural Cooperatives: A Neo-Institutional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1153-1159.
    26. Tanguy Bernard & Alemayehu Seyoum Taffesse & Eleni Gabre‐Madhin, 2008. "Impact of cooperatives on smallholders' commercialization behavior: evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 147-161, September.
    27. Fabio R. Chaddad & Michael L. Cook, 2004. "Understanding New Cooperative Models: An Ownership–Control Rights Typology," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 348-360.
    28. Emana, Bezabih., 2009. "Cooperatives : a path to economic and social empowerment in Ethiopia," ILO Working Papers 994467123402676, International Labour Organization.
    29. Ponte, Stefano, 2002. "The 'Latte Revolution'? Regulation, Markets and Consumption in the Global Coffee Chain," World Development, Elsevier, vol. 30(7), pages 1099-1122, July.
    30. Bezabih Emana., 2009. "Cooperatives a path to economic and social empowerment in Ethiopia," ILO Working Papers 995017193202676, International Labour Organization.
    31. Valentinov, Vladislav, 2007. "Why are cooperatives important in agriculture? An organizational economics perspective," Journal of Institutional Economics, Cambridge University Press, vol. 3(1), pages 55-69, April.
    32. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    33. Claude Ménard, 2004. "The Economics of Hybrid Organizations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(3), pages 345-376, September.
    34. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    35. Ortmann, Gerald F. & King, Robert P., 2007. "Agricultural Cooperatives I: History, Theory and Problems," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-29, March.
    36. Gian Nicola Francesconi & Nico Heerink, 2011. "Ethiopian Agricultural Cooperatives in an Era of Global Commodity Exchange: Does Organisational Form Matter?," Journal of African Economies, Centre for the Study of African Economies, vol. 20(1), pages 153-177, January.
    37. Bernard, Tanguy & Spielman, David J., 2009. "Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia," Food Policy, Elsevier, vol. 34(1), pages 60-69, February.
    38. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    4. 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.
    5. Shumeta, Zekarias & D'Haese, Marijke, 2016. "Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
    6. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.
    7. Gashaw Tadesse Abate & Gian Nicola Francesconi & Gian Nicola Francesconi, 2013. "Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia," Euricse Working Papers 1350, Euricse (European Research Institute on Cooperative and Social Enterprises).
    8. Abate, G. T., 2013. "Impact of agricultural cooperatives on smallholders\u2019 technical efficiency: evidence from Ethiopia," IWMI Working Papers H045831, International Water Management Institute.
    9. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    10. 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.
    11. 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.
    12. Kibrom A. ABAY & Bethelhem KORU & Gashaw Tadesse ABATE & Guush BERHANE, 2019. "How Should Rural Financial Cooperatives Be Best Organized? Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 187-215, March.
    13. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    14. Verhofstadt, Ellen & Maertens, Miet, 2013. "Cooperative membership and agricultural performance: Evidence from Rwanda," Working Papers 157389, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    15. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    16. Gashaw Tadesse ABATE & Gian Nicola FRANCESCONI & Kindie GETNET, 2014. "Impact Of Agricultural Cooperatives On Smallholders’ Technical Efficiency: Empirical Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 257-286, June.
    17. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    18. Aga, B.K. & Tesfay, G.B., 2018. "How Should Rural Financial Cooperatives Be Best Organized? Evidence from Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277735, International Association of Agricultural Economists.
    19. Aniseh S. Bro & Daniel C. Clay & David L. Ortega & Maria C. Lopez, 2019. "Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 895-915, April.
    20. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.

    More about this item

    Keywords

    Agribusiness; Farm Management;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae15:211889. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.