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The Role and Success Factors of Livestock Trading Cooperatives: Lessons from German Pork Production

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  • Theuvsen, Ludwig
  • Franz, Annabell

Abstract

In recent years the organization of meat supply chains has been among the most animatedly discussed topics in agriculture and the food industry. Many authors hypothesize that contracts and vertical integration are paramount for the future competitiveness of meat production. But most arguments do not take into account the complexity of today's meat supply chains and the pivotal role private and cooperative livestock traders still play in many countries. In this paper we analyze the role and success factors of livestock trading cooperatives in modern meat supply chains. The results show that livestock trading cooperatives are most successful when their service spectrum meets members' needs and offers an added value to farmers. From a theoretical perspective, the results indicate that the idea of searching for "one best way of organizing" food supply chains might be misguided and current writing on this topic might be too deterministic.

Suggested Citation

  • Theuvsen, Ludwig & Franz, Annabell, 2007. "The Role and Success Factors of Livestock Trading Cooperatives: Lessons from German Pork Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 10(03).
  • Handle: RePEc:ags:ifaamr:8164
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    References listed on IDEAS

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    1. Key, Nigel D. & MacDonald, James M., 2006. "Agricultural Contracting Trading Autonomy for Risk Reduction," Amber Waves, United States Department of Agriculture, Economic Research Service, February.
    2. Martinez, Stephen W., 2002. "A Comparison of Vertical Coordination in the U.S. Poultry, Egg, and Pork Industries," Agricultural Information Bulletins 33773, United States Department of Agriculture, Economic Research Service.
    3. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(02).
    4. Hansen, Mark H. & Morrow, J.L., Jr. & Batista, Juan C., 2002. "The Impact Of Trust On Cooperative Membership Retention, Performance, And Satisfaction: An Exploratory Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 5(01).
    5. M. den Ouden & Aalt A. Dijkhuizen & Ruud B.M. Huirne & Peter J.P. Zuurbier, 1996. "Vertical cooperation in agricultural production-marketing chains, with special reference to product differentiation in pork," Agribusiness, John Wiley & Sons, Ltd., vol. 12(3), pages 277-290.
    6. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    7. Wachenheim, Cheryl J. & deHillerin, Regis & Dumler, Mike, 2001. "Producer Perceptions of Hog Marketing Cooperatives," Journal of Cooperatives, NCERA-210, vol. 16.
    8. World Bank, 2005. "The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations," World Bank Other Operational Studies 8806, The World Bank.
    9. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economics Reports 34051, United States Department of Agriculture, Economic Research Service.
    10. Nigel Key, 2005. "How much do farmers value their independence?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 117-126, July.
    11. V. James Rhodes, 1983. "The Large Agricultural Cooperative as a Competitor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 1090-1095.
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    Cited by:

    1. Barraud-Didier, Valérie & Henninger, Marie-Christine & El Akremi, Assâad, 2012. "The Relationship Between Members’ Trust and Participation in the Governance of Cooperatives: The Role of Organizational Commitment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 15(1).
    2. repec:bla:jageco:v:68:y:2017:i:3:p:861-880 is not listed on IDEAS

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