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Testing Theories of Cooperative Arrangements in Agricultural Markets: Results from Producer Groups in Poland

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  • Banaszak, Ilona

Abstract

The main question posed in the paper asks why do some cooperative arrangements in agricultural markets survive and succeed and others fail? We define "success" and factors affecting success of cooperation using transaction costs theory and game theory. Transaction costs theory provides insights on comparative advantage of one form of organization versus others and proposes, while game theory focuses on interdependencies between partners entering the arrangements. Data were collected from 62 Polish farmer cooperative organizations called producer groups. The main aim of those organizations was to organize joint sales of output produced individually by their members. Some of the groups were functioning effectively while others that had disbanded or were no longer performing their essential functions. Variables such as the leader's strength, previous business acquaintances, initial selection of members, and number of members have a significant positive impact on the likelihood of success of the researched organizations.

Suggested Citation

  • Banaszak, Ilona, 2007. "Testing Theories of Cooperative Arrangements in Agricultural Markets: Results from Producer Groups in Poland," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7837, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa104:7837
    DOI: 10.22004/ag.econ.7837
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    Cited by:

    1. Marco Fazzini & Antonella Russo, 2014. "Profitability in the Italian Wine Sector: An Empirical Analysis of Cooperatives and Investor-Owned Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 130-137, July.
    2. Iliopoulos, C. & Hendrikse, G.W.J., 2008. "Influence Costs in Agribusiness Cooperatives: Evidence from Case Studies," ERIM Report Series Research in Management ERS-2008-040-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.
    3. World Bank, 2010. "Uganda - Public Expenditure Review : Strengthening the Impact of the Roads Budget," World Bank Publications - Reports 2941, The World Bank Group.
    4. Kotyza, P. & Tomšík, K., 2014. "Effects of Public Support on Producer Groups Establishment in the Czech Republic and Slovakia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(2), pages 1-11, June.
    5. Jana Vavřina & Kamila Růžičková & Dana Martinovičová, 2012. "The CAP reform beyond 2013: the economic performance of agricultural enterprises within the Visegrad Group," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 451-462.
    6. Raballand, Gael & Macchi, Patricia & Merotto, Dino & Petracco, Carly, 2009. "Revising the roads investment strategy in rural areas : an application for Uganda," Policy Research Working Paper Series 5036, The World Bank.
    7. Jan Vavřina & Kamila Růžičková, 2012. "Agricultural producers' groups in the Czech Republic: introductory review and discussion of the problem area economic performance measurement," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 441-450.

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    Keywords

    Agribusiness; Marketing;

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