IDEAS home Printed from https://ideas.repec.org/a/ags/areint/356003.html
   My bibliography  Save this article

Factors affecting farmers’ decision to join coffee producer cooperatives to improve their welfare

Author

Listed:
  • Rombeallo, Intan Parumbuan
  • Jamil, Muhammad Hatta
  • Rukmana, Didi

Abstract

Purpose. The aim of this research is to evaluate the farmer characteristics, knowledge, social and economic factors that influence the decision to join a cooperative, as well as its impact on farmers’ welfare. By identifying factors that affect farmers’ decision making, agricultural policies especially regarding cooperatives, will be optimised for development. Methodology / approach. This study was conducted at a Coffee Farmer Producer Cooperative in Tana Toraja, South Sulawesi Province, Indonesia. The sample consisted of 70 respondents from all members of the cooperative. The collection of data was done through the distribution of questionnaires, and the data were analysed using a statistical analysis method, namely Partial Least Square-Structural Equation Modeling with the software SmartPLS4.0. Results. Research found that agricultural policies implemented through corporate farming in the form of cooperatives improves the quality and capabilities of members, provides production capacity, and increases production, processing, and marketing. Furthermore, the result of the analysis proves that farmer characteristics, knowledge, social and economic factors have a positive and significant impact on the decision to join a cooperative, as well as a positive and significant impact on farmers’ welfare. The indicators with the strongest correlation with farmers’ characteristics are farming experience and age. The indicators that are most closely related to knowledge are the purpose and functions of the cooperative. The indicators that are most strongly linked to social factors are group support and sources of information, and to economic indicators are the availability of infrastructure and production capacity. Thus, the decision to join a cooperative has a positive impact on improving farmers’ welfare. Originality / scientific novelty. This study highlights comprehensive aspect of farmers’ decision to join cooperatives that has not been adequately studied in previous research. This study presents a new perspective that enriches the discussion in previous studies that only focused on the impacts of cooperative on farmers’ welfare without exploring the factors that influence it. Practical value / implications. The results of this study indicate recommendations for the stakeholders especially the government, to support the development of farmers’ institutions in order to optimally empower farmers. The government is supposed to take concrete steps by facilitating education about cooperatives, simplifying administrative processes, and improving infrastructure to encourage farmers to join cooperatives, and ultimately improve their welfare.

Suggested Citation

  • Rombeallo, Intan Parumbuan & Jamil, Muhammad Hatta & Rukmana, Didi, 2024. "Factors affecting farmers’ decision to join coffee producer cooperatives to improve their welfare," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 10(4), December.
    • Handle: RePEc:ags:areint:356003
    DOI: 10.22004/ag.econ.356003
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/356003/files/10_Rombeallo_article.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.356003?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. Utomo, Raden Priyo & Kuleh, Yohanes & Darma, Dio Caisar, 2023. "Conventional vs modern: which approach is better for the success of agricultural cooperatives?," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.
    2. Mainza, Nicholus Obby, 2022. "Factors affecting income generation among smallholder farmers with agricultural cooperative membership in Zambia," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 64(2), February.
    3. Jorge Luis Sánchez‐Navarro & Narciso Arcas‐Lario & Miguel Hernández‐Espallardo, 2024. "Identifying the antecedents of opportunism in agri‐food cooperatives: a comparative analysis between first‐ and second‐tier cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 201-223, March.
    4. Muhammad Hatta Jamil & Nadine Tika & Letty Fudjaja & A. Nixia Tenriawaru & Muslim Salam & Muhammad Ridwan & Ahmad Imam Muslim & Nividita Varun Chand, 2023. "Effectiveness of Agricultural Extension on Paddy Rice Farmer’s Baubau City, Southeast Sulawesi, Indonesia," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    5. Karolina Pawlak & Małgorzata Kołodziejczak, 2020. "The Role of Agriculture in Ensuring Food Security in Developing Countries: Considerations in the Context of the Problem of Sustainable Food Production," Sustainability, MDPI, vol. 12(13), pages 1-20, July.
    6. Furqan Sikandar & Vasilii Erokhin & Hongshu Wang & Shafiqur Rehman & Anna Ivolga, 2021. "The Impact of Foreign Capital Inflows on Agriculture Development and Poverty Reduction: Panel Data Analysis for Developing Countries," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    7. Abrhám, Josef & Vošta, Milan & Čajka, Peter & Rubáček, Filip, 2021. "The specifics of selected agricultural commodities in international trade," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(2), June.
    8. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Muhammad Ihtisham & Badar Naseem Siddiqui & Shemei Zhang, 2022. "Can Cooperative Supports and Adoption of Improved Technologies Help Increase Agricultural Income? Evidence from a Recent Study," Land, MDPI, vol. 11(3), pages 1-18, March.
    9. Martinson Ankrah Twumasi & Yuansheng Jiang & Bismark Addai & Zhao Ding & Abbas Ali Chandio & Prince Fosu & Dennis Asante & Anthony Siaw & Frank Osei Danquah & Bright Asiamah Korankye & Gideon Ntim-Amo, 2021. "The Impact of Cooperative Membership on Fish Farm Households’ Income: The Case of Ghana," Sustainability, MDPI, vol. 13(3), pages 1-16, January.
    10. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    11. Guoqiang Liu & Dakuan Qiao & Yuying Liu & Xinhong Fu, 2022. "Does Service Utilization Improve Members’ Welfare? Evidence from Citrus Cooperatives in China," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    12. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    13. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    14. Yuying Liu & Kaiyao Shi & Ziqi Liu & Ling Qiu & Yan Wang & Hao Liu & Xinhong Fu, 2022. "The Effect of Technical Training Provided by Agricultural Cooperatives on Farmers’ Adoption of Organic Fertilizers in China: Based on the Mediation Role of Ability and Perception," IJERPH, MDPI, vol. 19(21), pages 1-20, November.
    15. Muyesaier Tudi & Huada Daniel Ruan & Li Wang & Jia Lyu & Ross Sadler & Des Connell & Cordia Chu & Dung Tri Phung, 2021. "Agriculture Development, Pesticide Application and Its Impact on the Environment," IJERPH, MDPI, vol. 18(3), pages 1-23, January.
    16. Devi Maulida Rahmah & Dwi Purnomo & Fitry Filianty & Irfan Ardiansah & Rahmat Pramulya & Ryozo Noguchi, 2023. "Social Life Cycle Assessment of a Coffee Production Management System in a Rural Area: A Regional Evaluation of the Coffee Industry in West Java, Indonesia," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    17. Utomo, Raden Priyo & Kuleh, Yohanes & Darma, Dio Caisar, 2023. "Conventional vs Modern: Which Approach is Better for the Success of Agricultural Cooperatives?," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), January.
    18. Lingjuan Cheng & Wei Zou & Kaifeng Duan, 2021. "The Influence of New Agricultural Business Entities on the Economic Welfare of Farmer’s Families," Agriculture, MDPI, vol. 11(9), pages 1-15, September.
    19. Abebayehu Girma Geffersa, 2024. "Does cooperative membership enhance inorganic fertilizer use intensity? Panel data evidence from maize farmers in Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 327-361, June.
    20. David L. Ortega & Aniseh S. Bro & Daniel C. Clay & Maria Claudia Lopez & Espoir Tuyisenge & Ruth Ann Church & Alfred R. Bizoza, 2019. "Cooperative membership and coffee productivity in Rwanda’s specialty coffee sector," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 967-979, August.
    21. Mulu Debela Ofolsha & Fekadu Beyene Kenee & Dawit Alemu Bimirew & Tesfaye Lemma Tefera & Aseffa Seyoum Wedajo, 2022. "The Effect of Social Networks on Smallholder Farmers’ Decision to Join Farmer-Base Seed Producer Cooperatives (FBSc): The Case of Hararghe, Oromia, Ethiopia," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    22. Wanglin Ma & Marco A. Marini & Dil B. Rahut, 2023. "Farmers’ organizations and sustainable development: An introduction," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 683-700, September.
    23. Balgah, Roland Azibo, 2019. "Factors Influencing Coffee Farmers’ Decisions to Join Cooperatives," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 8(01).
    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. Han Zhang & Dongli Wu, 2023. "The Impact of Agricultural Factor Inputs, Cooperative-Driven on Grain Production Costs," Agriculture, MDPI, vol. 13(10), pages 1-17, October.
    2. Zhanping Hu & Qian Forrest Zhang, 2024. "Alternative agrifood systems and the economic sustainability of farmers' cooperatives: The Chinese experience," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7447-7460, December.
    3. Magenge Deborah & Kyaruzi Athman & Nsenga, Justus, 2025. "Factors Influencing Tomato Farmers to Adopt Agricultural Technologies in Mlali Mvomero District, Tanzania," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3), pages 4325-4340, March.
    4. Furqan Sikandar & Vasilii Erokhin & Li Xin & Marina Sidorova & Anna Ivolga & Alexey Bobryshev, 2022. "Sustainable Agriculture and Rural Poverty Eradication in Pakistan: The Role of Foreign Aid and Government Policies," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    5. Wanglin Ma & Hongyun Zheng & Amaka Nnaji, 2023. "Cooperative membership and adoption of green pest control practices: Insights from rice farmers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 459-479, July.
    6. Patricia Mussali-Galante & María Luisa Castrejón-Godínez & José Antonio Díaz-Soto & Ángela Patricia Vargas-Orozco & Héctor Miguel Quiroz-Medina & Efraín Tovar-Sánchez & Alexis Rodríguez, 2023. "Biobeds, a Microbial-Based Remediation System for the Effective Treatment of Pesticide Residues in Agriculture," Agriculture, MDPI, vol. 13(7), pages 1-25, June.
    7. Muhammad Ghufran & Luigi Aldieri & Andreas Pyka & Sumran Ali & Giovanna Bimonte & Luigi Senatore & Concetto Paolo Vinci, 2025. "Food security assessment in the light of sustainable development goals: a post-Paris Agreement era," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 4541-4569, February.
    8. Ali Raza & Guangji Tong & Vasilii Erokhin & Alexey Bobryshev & Lyubov Chaykovskaya & Natalya Malinovskaya, 2023. "Sustaining Performance of Wheat–Rice Farms in Pakistan: The Effects of Financial Literacy and Financial Inclusion," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    9. Hussam Halbusi & Pedro Soto-Acosta & Simona Popa, 2023. "Analysing e-entrepreneurial intention from the theory of planned behaviour: the role of social media use and perceived social support," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 1611-1642, December.
    10. Min Chen & Jie Zhang & Hongtao Wang & Lingyun Li & Meizhen Yin & Jie Shen & Shuo Yan & Baoyou Liu, 2024. "Preparation of Nanoscale Indoxacarb by Using Star Polymer for Efficiency Pest Management," Agriculture, MDPI, vol. 14(7), pages 1-16, June.
    11. Florian Schuberth, 2021. "Confirmatory composite analysis using partial least squares: setting the record straight," Review of Managerial Science, Springer, vol. 15(5), pages 1311-1345, July.
    12. Sadiq, Muhammad & Nawaz, Muhammad Atif & Sharif, Arshian & Hanif, Sobia, 2024. "Bridging green supply chain practices and environmental performance in Chinese semiconductor sector: With the role of energy efficiency and green HRM," International Journal of Production Economics, Elsevier, vol. 277(C).
    13. Khondker Mohammad Zobair & Louis Sanzogni & Luke Houghton & Md Zahidul Islam, 2021. "Forecasting care seekers satisfaction with telemedicine using machine learning and structural equation modeling," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-31, September.
    14. Ibrahim Mutambik & Abdullah Almuqrin, 2024. "Employee Acceptance of Digital Transformation: A Study in a Smart City Context," Sustainability, MDPI, vol. 16(4), pages 1-21, February.
    15. Barbosa, Anrafel de Souza & Crispim, Maria Cristina & da Silva, Luiz Bueno & da Silva, Jonhatan Magno Norte & Barbosa, Aglaucibelly Maciel & Correia, Lucas Miguel Alencar de Morais & Morioka, Sandra N, 2025. "Empirical analysis of workers' perceptions of ESG impacts on corporate sustainability performance: A methodological innovation combining the PLS-SEM, PROMETHEE-ROC and FIMIX-PLS methods," Technological Forecasting and Social Change, Elsevier, vol. 215(C).
    16. Amanpreet Kaur & Prabhjot Kaur, 2024. "Rethinking International Migration in Punjab: A Push–Pull-Mooring Framework," Journal of International Migration and Integration, Springer, vol. 25(1), pages 331-358, March.
    17. Sodiq Arogundade & Mduduzi Biyase & Santos Bila, 2022. "Be Nice to Thy Neighbors: Spatial Impact of Foreign Direct Investment on Poverty in Africa," Economies, MDPI, vol. 10(6), pages 1-20, June.
    18. David Lindermüller & Irina Lindermüller & Christian Nitzl & Bernhard Hirsch, 2024. "Error Culture, Auditors’ Error Communication, and the Performance of the Auditee: A Study Among German Local Public Sector Auditors," Schmalenbach Journal of Business Research, Springer, vol. 76(2), pages 245-266, June.
    19. Mai Mostafa Awad & Abd‘Elazez Hashem & Hend Mohamed Naguib, 2022. "The Impact of Lean Management Practices on Economic Sustainability in Services Sector," Sustainability, MDPI, vol. 14(15), pages 1-27, July.
    20. Sabakun Naher Shetu, 2025. "Determinants of generation Z consumers’ mobile online shopping apps continuance intention to use during COVID-19 and beyond—an empirical study," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.

    More about this item

    Keywords

    ;
    ;

    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:areint:356003. 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: http://are-journal.com/are .

    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.