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The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China

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  • Liu, Yuying
  • Renwick, Alan
  • Fu, Xinhong

Abstract

Although cooperative organizations aim to enhance agricultural production and marketing, in some countries such as China, not all members sell their products through agricultural cooperatives. This study examines the determinants of using agricultural cooperatives as a marketing channel and its effects on farm income and household income, using survey data collected from cooperative members in low-income regions of Sichuan province in China. We employ both propensity score matching model and inverse probability weighting estimator with regression adjustment to address the sample selection bias issue. The empirical results show that risk attitude, farm size, machine ownership, sales ability, and demonstration level of cooperatives are main factors that determine the members’ decision to use agricultural cooperatives as a marketing channel, and the marketing channel users obtain significantly higher farm income and household income than nonusers. Our findings highlight the importance and necessity of promoting agricultural cooperatives as a marketing channel among non-users.

Suggested Citation

  • Liu, Yuying & Renwick, Alan & Fu, Xinhong, 2019. "The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 22(2).
  • Handle: RePEc:ags:ifaamr:284937
    DOI: 10.22004/ag.econ.284937
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    Cited by:

    1. Wanglin Ma & Puneet Vatsa & Hongyun Zheng & Yanzhi Guo, 2022. "Does online food shopping boost dietary diversity? Application of an endogenous switching model with a count outcome variable," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    2. Huma Neupane & Krishna P. Paudel & Mandeep Adhikari & Qinying He, 2022. "Impact of cooperative membership on production efficiency of smallholder goat farmers in Nepal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 337-356, June.
    3. Liang Chi & Mengshuai Zhu & Chen Shen & Jing Zhang & Liwei Xing & Xiangyang Zhou, 2023. "Does the Winner Take All in E-Commerce of Agricultural Products under the Background of Platform Monopoly?," Agriculture, MDPI, vol. 13(2), pages 1-16, February.
    4. Yuying Liu & Ruiling Shi & Yiting Peng & Wei Wang & Xinhong Fu, 2022. "Impacts of Technology Training Provided by Agricultural Cooperatives on Farmers’ Adoption of Biopesticides in China," Agriculture, MDPI, vol. 12(3), pages 1-17, February.
    5. Li, Xiaokang & Guo, Hongdong & Jin, Songqing & Ma, Wanglin & Zeng, Yiwu, 2021. "Do farmers gain internet dividends from E-commerce adoption? Evidence from China," Food Policy, Elsevier, vol. 101(C).
    6. Mateus de Carvalho Reis Neves & Felipe de Figueiredo Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "The Role of Cooperatives in Brazilian Agricultural Production," Agriculture, MDPI, vol. 11(10), pages 1-15, September.
    7. Neves, Mateus & Silva, Felipe de Figueiredo & de Freitas, Carlos Otávio, 2021. "Does Cooperative Membership Increase Rural Income? Evidence from Brazil’s Agricultural Sector," 2021 Conference, August 17-31, 2021, Virtual 315268, International Association of Agricultural Economists.
    8. Zhu, Zhongkun & Ma, Wanglin & Sousa-Poza, Alfonso & Leng, Chenxin, 2020. "The effect of internet usage on perceptions of social fairness: Evidence from rural China," China Economic Review, Elsevier, vol. 62(C).
    9. Hongyun Zheng & Wanglin Ma & Gucheng Li, 2021. "Learning from neighboring farmers: Does spatial dependence affect adoption of drought‐tolerant wheat varieties in China?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(4), pages 519-537, December.
    10. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    11. Martinson Ankrah Twumasi & Hongyun Zheng & Love Offeibea Asiedu-Ayeh & Anthony Siaw & Yuansheng Jiang, 2023. "Access to Financial Services and Its Impact on Household Income: Evidence from Rural Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 869-890, August.
    12. Axel WOLZ & Shemei ZHANG & Ya DING, 2020. "Agricultural production cooperatives and agricultural development: Is there a niche after all? Findings from an exploratory survey in China," CIRIEC Working Papers 2004, CIRIEC - Université de Liège.
    13. 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.
    14. Rui Chen & Nawab Khan & Shemei Zhang, 2022. "Policy Evaluation of Demonstration Cooperative Construction: Evidence from Sichuan Province, China," IJERPH, MDPI, vol. 19(19), pages 1-22, September.
    15. Wanglin Ma & Xiaobing Wang, 2020. "Internet Use, Sustainable Agricultural Practices and Rural Incomes: Evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1087-1112, October.
    16. 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.
    17. Hongyun Zheng & Wanglin Ma, 2023. "Smartphone-based information acquisition and wheat farm performance: insights from a doubly robust IPWRA estimator," Electronic Commerce Research, Springer, vol. 23(2), pages 633-658, June.
    18. De Carvalho Reis Neves, Mateus & Freitas, Carlos Otavio & De Figueiredo Silva, Felipe, 2021. "Does cooperative membership increase rural income? Evidence from Brazilian agricultural sector," 2021 Annual Meeting, August 1-3, Austin, Texas 314006, Agricultural and Applied Economics Association.
    19. Wanglin Ma & Peng Nie & Pei Zhang & Alan Renwick, 2020. "Impact of Internet use on economic well‐being of rural households: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 503-523, May.
    20. Zhou, Xiaoshi & Ma, Wanglin, 2021. "Effects of Agricultural Mechanization on Land Productivity: Evidence from China," 2021 Conference, August 17-31, 2021, Virtual 315143, International Association of Agricultural Economists.
    21. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    22. Zhang, Shemei & Sun, Zhanli & Ma, Wanglin & Valentinov, Vladislav, 2020. "The effect of cooperative membership on agricultural technology adoption in Sichuan, China," China Economic Review, Elsevier, vol. 62(C).
    23. Jiali Wang & Yujia Huo & Xiangyu Guo & Yang Xu, 2022. "The Pricing Strategy of the Agricultural Product Supply Chain with Farmer Cooperatives as the Core Enterprise," Agriculture, MDPI, vol. 12(5), pages 1-17, May.
    24. Wanglin Ma & Zhongkun Zhu, 2020. "A Note: Reducing Cropland Abandonment in China – Do Agricultural Cooperatives Play a Role?," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 929-935, September.

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