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The ‘Transaction Cost Approach’ and the Performance of the Belgian Dairy Co-operatives Before 1940

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Author Info
Peter Van Der Hallen () (Catholic University of Leuven)
Abstract

We see that Belgian industrial dairy production before World War II lagged the developments of other countries in the same region and of the same size such as Denmark and The Netherlands. The share of home production remained remarkably high, while within the industrial segment the number of private to co-operative creameries was high compared to the more successful countries. We argue that this is no coincidence. Co-operative creameries were better suited to deal with the problems posed by the organisation and technology of dairy production at the time. The lacklustre performance of the Belgian dairy industry was therefore connected to the underdevelopment of the co-operative sector. The co-operative spirit of Belgian farmers suffered due to some historical events such as the large scale introduction of farm cream separators and especially the outbreak of World War I. This erosion of co-operative spirit diminished the attractiveness and binding power of the co-operative creameries.

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File URL: http://www.cooperatiefondernemen.be/wp/WP%20SCE%2009-02.pdf
File Format: application/pdf
File Function: First version, 2009
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Publisher Info
Paper provided by Katholieke Universiteit Leuven, HIVA, Cera Centre for Co-operative Entrepreneurship in its series Working Papers on Social and Co-operative Entrepreneurship with number 0902.

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Length: 38 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:hva:wpssce:0902

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Web page: http://www.cooperatiefondernemen.be
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Related research
Keywords: Dairy Industry; Co-operatives; Creameries;

Find related papers by JEL classification:
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913
N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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References listed on IDEAS
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. O'Rourke, K, 1997. "The European Grain Invasion 1870-1913," Papers 97/02, College Dublin, Department of Political Economy-.
    Other versions:
  2. O'Rourke, Kevin H., 2007. "Property rights, politics and innovation: creamery diffusion in pre-1914 Ireland," European Review of Economic History, Cambridge University Press, vol. 11(03), pages 395-417, December. [Downloadable!]
  3. Henriksen, Ingrid & Hviid, Morten, 2005. "Diffusion of new technology and complementary best practice: A case study," European Review of Economic History, Cambridge University Press, vol. 9(03), pages 365-397, December. [Downloadable!]
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This page was last updated on 2009-12-6.


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