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Impact of diversification on agricultural cooperatives in Wisconsin

Author

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  • David D. Trechter

    (University of Wisconsin at River Falls, 410 S. 3rd St., Riverfalls, WI 54022-5001)

Abstract

Agricultural cooperatives often face internal and external pressures to diversify their businesses. Factors associated with a decision to diversify were examined in this study; results suggest that cooperatives that were larger and involved in input supply were more likely to diversify. In addition, the impact of diversification on key performance measures for the cooperatives was examined. Diversification had no statistical association with key performance areas (profitability, patronage refunds, or equity redemption). Diversification was associated with larger membership. On the basis of this study, diversification appears to have a neutral to modestly positive impact on cooperative performance. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • David D. Trechter, 1996. "Impact of diversification on agricultural cooperatives in Wisconsin," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 385-394.
  • Handle: RePEc:wly:agribz:v:12:y:1996:i:4:p:385-394
    DOI: 10.1002/(SICI)1520-6297(199607/08)12:4<385::AID-AGR8>3.0.CO;2-V
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    Cited by:

    1. Damien Rousselière, 2017. "A flexible approach to age dependence in organizational mortality. Comparing the life duration for cooperative and non-cooperative enterprises using a Bayesian Generalized Additive Discrete Time Survi," Working Papers SMART - LERECO 17-08, INRA UMR SMART-LERECO.
    2. Isidoro Guzmán Raja & Narciso Arcas Lario & Domingo García Pérez de Lema, 2006. "La eficiencia técnica como medida de rendimiento de las cooperativas agrarias," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 55, pages 289-311, August.
    3. Bijman, W.J.J. & Hendrikse, G.W.J. & van Oijen, A.A.C.J., 2012. "Accommodating Two Worlds in One Organization: Changing Board Models in Agricultural Cooperatives," ERIM Report Series Research in Management ERS-2012-015-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Jeffrey P. Katz, 1997. "Managerial behavior and strategy choices in agribusiness cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 13(5), pages 483-495.

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