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Objectives’alignment between membersand agricultural cooperatives

Author

Listed:
  • François Bareille

    (SMART-LERECO, AGROCAMPUS OUEST, INRA, 35000 Rennes, France)

  • Florence Bonnet-Beaugrand

    (BIOEPAR, INRA, ONIRIS, 44000 Nantes, France)

  • Sabine Duvaleix-Tréguer

    () (SMART-LERECO, AGROCAMPUS OUEST, INRA, 35000 Rennes, France)

Abstract

Members’commitment lessens when agricultural cooperatives grow larger.Their organization becomes more complex, and their membership more heterogeneous,which threatens their sustainability and leads them to implement specific mechanismsfor collective decisions. We explore how the alignment of objectives between a multi-purpose cooperative and its members influences member commitment. We estimate amultinomial probit model on a cross-section sample of 3205 members from a largeagricultural cooperative in France. We assess the determinants of member commitmentthrough four factors: the offer of new agricultural practices, the availability of outletsand supplies to members, the farm distance to the cooperative headquarters and thefarm governance. We show that the adoption of new agricultural practices has a smallbut significant effect. The availability of outlets and supplies has the strongest effect onthe economic involvement of the farmers. Other determinants, such as farm governanceor geographical distance to the cooperative headquarters, also reinforce membercommitment.

Suggested Citation

  • François Bareille & Florence Bonnet-Beaugrand & Sabine Duvaleix-Tréguer, 2017. "Objectives’alignment between membersand agricultural cooperatives," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 98(1-2), pages 75-91.
  • Handle: RePEc:rae:jouraf:v:98:y:2017:i:1-2:p:75-91
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    Cited by:

    1. Sabine Duvaleix-Treguer, 2018. "Producer organisations in the meat sector," Post-Print hal-01923028, HAL.
    2. Iliopoulos, Constantine & Valentinov, Vladislav, 2018. "Member heterogeneity in agricultural cooperatives: A systems-theoretic perspective," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 1-22.

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    More about this item

    Keywords

    Agricultural cooperatives.Member commitment.Farm innovation.Economic involvement;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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