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On the Emergence of Growers' Associations

Author

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  • Hendrikse, G.W.J.
  • Bijman, W.J.J.

Abstract

Cooperatives in agricultural and horticultural markets have faced problems in responding to the increasing differentiation in demand as well as supply. One response is the emergence of growers' associations. They are not vertically integrated forward into a processor/retailer stage of production like cooperatives. This gives processors/retailers the freedom to invest in the direction they most like, given the increasing differentiation in demand. Growers' associations face on the supply side a trade off between self-selection and countervailing power regarding the increasing differentiation in supply. Heterogeneous growers' associations frustrate high quality growers due to the policy of uniform treatment of members, but they are strong in terms of countervailing power of the growers collectively. The opposite holds for homogeneous growers' associations.

Suggested Citation

  • Hendrikse, G.W.J. & Bijman, W.J.J., 2001. "On the Emergence of Growers' Associations," ERIM Report Series Research in Management ERS-2001-34-ORG, 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.
    • Handle: RePEc:ems:eureri:98
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    File URL: https://repub.eur.nl/pub/98/erimrs20010613145714.pdf
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    References listed on IDEAS

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    1. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-1158, December.
    2. George Hendrikse & Jos Bijman, 2002. "Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 104-119.
    3. Bijman, W.J.J. & Hendrikse, G.W.J. & Veerman, C.P., 2000. "A marketing co-operative as a system of attributes," ERIM Report Series Research in Management ERS-2000-10-ORG, 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.
    4. Bech-Larsen, Tino, 2000. "The haven of the self-service store – A study of the fruit and vegetable department’s influence on customer attitudes towards food chain stores," MAPP Working Papers 70, University of Aarhus, Aarhus School of Business, The MAPP Centre.
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    Cited by:

    1. Zago, Angelo M., 2002. "Quality Indicators And Intermediate Products: A Non-Parametric Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19591, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lusine H. Aramyan & Christien J.M. Ondersteijn & Alfons G.J.M. Oude Lansink & Olaf van Kooten & Jo H.M. Wijnands, 2006. "Analyzing greenhouse firm performance across different marketing channels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 267-280.
    3. Kouwenhoven, Gerry & Reddy Nalla, Vijayender & Lossonczy von Losoncz, Ton, 2012. "Creating Sustainable Businesses by Reducing Food Waste: A Value Chain Framework for Eliminating Inefficiencies," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-20, September.

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    More about this item

    Keywords

    Growers' association; incomplete contracting; market power; self-selection;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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