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Agricultural Cooperatives and Market Performance in Food Manufacturing


  • Rogers, Richard T.
  • Petraglia, Lisa M.


Support for the cooperative yardstick hypothesis was found using a standard structure-performance model that was extended to include a cooperative market share variable and was estimated with a large cross-section of food manufacturing markets. Market concentration and advertising intensity were positively related to price-cost margins. In addition, the aggregate market share of the one hundred largest agricultural marketing cooperatives was inversely related to price-cost margins. The magnitude of the effect was largest in the more concentrated markets. This suggests that. where cooperatives have vertically extended themselves into food processing. more competitive outcomes are found even in highly concentrated markets.

Suggested Citation

  • Rogers, Richard T. & Petraglia, Lisa M., 1994. "Agricultural Cooperatives and Market Performance in Food Manufacturing," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 9.
  • Handle: RePEc:ags:joagco:46399

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    References listed on IDEAS

    1. Jesse, Edward V. & Johnson, Aaron C. Jr, 1980. "Marketing Cooperatives and Undue Price Enhancement: A Theoretical Perspective," Working Papers 202953, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    2. Robert L. Wills, 1985. "Evaluating Price Enhancement by Processing Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 183-192.
    3. Peter Helmberger & Sidney Hoos, 1962. "Cooperative Enterprise and Organization Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(2), pages 275-290.
    4. Sexton, Richard J. & Iskow, Julie, 1993. "What Do We Know About the Economic Efficiency of Cooperatives: An Evaluative Survey," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8.
    5. Peter G. Helmberger, 1964. "Cooperative Enterprise as a Structural Dimension of Farm Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(3), pages 603-617.
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    Cited by:

    1. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Anonymous & Gehlhar, Mark J., 2005. "New Directions In Global Food Markets," Agricultural Information Bulletins 33751, United States Department of Agriculture, Economic Research Service.
    3. Edelman, Mark & Dunn, John R., 2009. "Cooperatives: A Competitive Yardstick for Health Care," Staff General Research Papers Archive 31470, Iowa State University, Department of Economics.
    4. Milford Anna B., 2012. "The Pro-Competitive Effect of Coffee Cooperatives in Chiapas, Mexico," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-29, March.

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    Agribusiness; Marketing;


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