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Some like to join, others to deliver: an econometric analysis of farmers' relationships with agricultural co-operatives

Author

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  • Stefano Pascucci
  • Cornelis Gardebroek
  • Liesbeth Dries

Abstract

In many European countries, farmers are a member of a processing or marketing co-operative, and most of these farmers deliver their products to that co-operative. However, an extensive data set of Italian farmers shows that not all members deliver to their co-op, and that there are also non-members that deliver to co-ops. Using theoretical arguments from the New Institutional Economics literature, a bivariate probit model is estimated to explain co-op membership and delivery jointly. Results show that membership and delivery are indeed linked, but also that different factors influence farmers' decisions on membership and delivery. , Oxford University Press.

Suggested Citation

  • Stefano Pascucci & Cornelis Gardebroek & Liesbeth Dries, 2012. "Some like to join, others to deliver: an econometric analysis of farmers' relationships with agricultural co-operatives," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(1), pages 51-74, February.
  • Handle: RePEc:oup:erevae:v:39:y:2012:i:1:p:51-74
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    Cited by:

    1. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    2. repec:eee:renene:v:133:y:2019:i:c:p:1147-1157 is not listed on IDEAS
    3. repec:pal:eurjdr:v:31:y:2019:i:4:d:10.1057_s41287-018-0179-7 is not listed on IDEAS
    4. repec:eee:jfpoli:v:74:y:2018:i:c:p:53-64 is not listed on IDEAS
    5. repec:bla:agecon:v:49:y:2018:i:6:p:787-797 is not listed on IDEAS
    6. Mujawamariya, Gaudiose & D’Haese, Marijke & Speelman, Stijn, 2013. "Exploring double side-selling in cooperatives, case study of four coffee cooperatives in Rwanda," Food Policy, Elsevier, vol. 39(C), pages 72-83.
    7. Eeva Alho, 2015. "Farmers’ self-reported value of cooperative membership: evidence from heterogeneous business and organization structures," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-22, December.
    8. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct selling," Working Papers halshs-00906894, HAL.
    9. Anna Milford, 2014. "Co-operative or coyote? Producers’ choice between intermediary purchasers and Fairtrade and organic co-operatives in Chiapas," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(4), pages 577-591, December.
    10. Viergutz, Tim & Zubek, Nana & Schulze-Ehlers, Birgit, 2016. "How Spatial Pricing Affects Cooperative Members’ Switching Decisions," 149th Seminar, October 27-28, 2016, Rennes, France 244772, European Association of Agricultural Economists.
    11. Jan Falkowski & Aleksandra Chlebicka, 2018. "Fruit and vegetables producer organisations – some insights on their functioning based on data from Poland," JRC Working Papers JRC108869, Joint Research Centre (Seville site).
    12. repec:hal:journl:halshs-01098762 is not listed on IDEAS
    13. Benmehaia, Mohamed Amine & Brabez, Fatima, 2016. "The Propensity To Cooperate Among Peasant Farmers In Algeria: An Analysis From Bivariate Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4), pages 1-14, October.
    14. 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).
    15. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    16. Jos Bijman Jan Brusselaers & Krijn Poppe & Tomas Garcia Azcarate, 2014. "Dp Policy Measures Impact the Position and Performance of Farmers' Cooperatives in the EU?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 531-553, December.
    17. Smaïl Amghrous & Damien Rousselière, 2019. "L’implication des agriculteurs dans les coopératives dans un pays en transition vers une économie de marché : Une application aux coopératives agricoles de services algériennes," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 724-749, September.
    18. Arcas-Lario, Narciso & Martín-Ugedo, Juan Francisco & Mínguez-Vera, Antonio, 2014. "Farmers’ Satisfaction with Fresh Fruit and Vegetable Marketing Spanish Cooperatives: An Explanation from Agency Theory," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(1), pages 1-20, February.

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