IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The Choice of Marketing Cooperative in a Transition Agriculture

  • Ferto, Imre
  • Bakucs, Lajos Zoltan
  • Szabo, Gabor G.

The agriculture in transition countries can be described by considerable uncertainties. In these countries public institutions are ineffective in ensuring contract enforcement. The absence of enforceable contract to set up any kind of vertical co-ordination has become difficult. In addition, this creates severe barriers for price discovery involving high transaction costs to co-ordinate market exchanges. Although there is a wealth of literature on marketing cooperative, but research on their role in transition agriculture is scarce. This paper tries to contribute to this gap. In this paper we have analysed the potential benefits and costs of the marketing cooperatives in Hungary employing transaction cost economics framework. The results presented add to a small literature on the marketing cooperatives in transition agriculture. We found that the quantity, the existence of contract, flexibility and trust are the most important factor for farmers to selling their product via cooperative. The cluster analysis provides some additional insights regarding farmers' choices. Namely, direct benefits including price, input finance extension services and speed of payments from cooperative membership have also important role. The most striking result is that the diversification and reputation has positive influences on the share of cooperative. Furthermore, large farmers have less willingness to sell their product to the cooperative. Surprisingly, asset specificity has rather negative effects on the share of cooperative.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by European Association of Agricultural Economists in its series 103rd Seminar, April 23-25, 2007, Barcelona, Spain with number 9419.

in new window

Date of creation: 2007
Date of revision:
Handle: RePEc:ags:eaa103:9419
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:eaa103:9419. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.