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Co-operatives in chains: institutional restructuring in the Dutch fruit and vegetables industry

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Author Info
Bijman, W.J.J.
Hendrikse, G.W.J. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
Abstract

Co-operatives play a major role in the agricultural and food industry. Co-operatives, by the very nature, are producer-oriented firms. As market conditions for food products have changed in recent decades, the question is raised whether co-operatives are still efficient organisations for carrying transaction with agrifood products? Bijman (2002) has addressed this question for the fresh produce industry in The Netherlands. Traditionally, fruits and vegetables were sold through auctions, organised by grower-owned co-operatives. In the 1990s several auction co-operatives merged, transformed into marketing co-operatives, and vertically integrated into wholesale. In addition, growers have set up many new bargaining associations and marketing co-operatives. These new co-operatives have started crop and variety specific marketing programmes. For reasons of asymmetric information and investment-related transaction costs several of the new co-operative firms have also included the wholesale function.

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Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2003-089-ORG Revision_Date: 2008-03-28.

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Date of creation: 27 Nov 2003
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Handle: RePEc:dgr:eureri:30001179

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Keywords: co-operatives auction fresh produce asymmetric information transaction cost asset specificity

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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.:
  1. Hendrikse, George W J & Bijman, Jos, 2002. " Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(1), pages 104-19, February. [Downloadable!] (restricted)
  2. Masten, Scott E & Meehan, James W, Jr & Snyder, Edward A, 1991. "The Costs of Organization," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(1), pages 1-25, Spring.
  3. Erin Anderson & David C. Schmittlein, 1984. "Integration of the Sales Force: An Empirical Examination," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 385-395, Autumn. [Downloadable!] (restricted)
  4. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law & Economics, University of Chicago Press, vol. 25(1), pages 27-48, April.
  5. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September. [Downloadable!] (restricted)
  6. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 349-371, July.
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  1. Pérez Mesa, Juan & De Pablo Valenciano, Jaime(*), 2007. "Caracterización del comercio internacional de frutas y hortalizas en la Unión Europea/Characterization of Fruit and Vegetables Trade in the European Union," Estudios de Economía Aplicada, Revista Estudios de Economía Aplicada, vol. 25, pages 619-642, Diciembre. [Downloadable!] (restricted)
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