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Ownership Structure in Agrifood Chains: The Marketing Cooperative

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  • George Hendrikse
  • Jos Bijman

Abstract

Globalization, technological developments, and consumer concerns press farmers and food producers to enhance product innovation and to seek more efficient production and distribution structures. These changes in agrifood markets shift the relative importance of the investments by different chain partners. It may therefore be necessary to change the allocation of ownership of essential assets to induce agents to make those investments that generate the chain optimum. This article analyzes the impact of ownership structure on investments in a three-tier supply chain from an incomplete contracting perspective. Circumstances are determined in which a marketing cooperative is the unique first-best ownership structure. Copyright 2002, Oxford University Press.

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  • George Hendrikse & Jos Bijman, 2002. "Ownership Structure in Agrifood Chains: The Marketing Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 104-119.
    • Handle: RePEc:oup:ajagec:v:84:y:2002:i:1:p:104-119
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00246
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