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The importance and role of trust in agricultural marketing co-operatives


  • Szabo, Gabor G.


Marketing co-operatives can strengthen countervailing power of producers and help to co-ordinate (agricultural) supply chains. According to many authors, one of the means of increasing the competitiveness of co-ops can be traced back to trust and informal connections existing between the members and the cooperative (management), as well as among the members. Using New Institutional Economics’ theories and the “co-operative identity†concept as theoretical background, this review paper analyses the importance of trust, as well as the role of the co-operative principles as formal-legal securities of trust (development) in agricultural marketing co-operatives.

Suggested Citation

  • Szabo, Gabor G., 2010. "The importance and role of trust in agricultural marketing co-operatives," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 112, July.
  • Handle: RePEc:ags:stagec:93119

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    Cited by:

    1. Szabo, G. Gabor & Baranyai, Zsolt & Barta, Istvan, 2014. "Sustainability of Emerging Agricultural Co-operatives in the New Member States of the EU: Hungarian Experience," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 170295, European Association of Agricultural Economists.
    2. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Working Papers JRC101617, Joint Research Centre (Seville site).

    More about this item


    co-operation; co-operative identity; principles; trust; vertical co-ordination; Institutional and Behavioral Economics; Labor and Human Capital; Marketing; Q13; L14; L22;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure


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