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Marketing Boards as Hybrid Governance: A study of the Canadian hog industry

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  • Royer, Annie
  • Menard, Claude
  • Gouin, Daniel-Mercier

Abstract

Because of their perishable nature and the impact of their quality on consumers, agricultural products have always raised important problems of coordination and control with high transaction costs. The recent period in the agrifood industry has registered substantial evolution in devices intended to provide vertical coordination among the various agents of value chains. The most noticeable evolution might be the progressive dismantlement of collective organizations in favor of a contractual approach that would be more compatible with market-oriented policies. In this paper, we revisit the role of marketing boards, mainly through the Canadian experience, more specifically in the Province of Québec. Examining their nature and their role, we intend to better understand the type of problems marketing boards were trying to face and still do, and to assess their success and failures in organizing complex transactions with strong asymmetries among partners who need to coordinate while keeping decision rights distinct. We shall argue that their occurrence in very different contexts as well as their resilience is rooted in a relatively successful combination of organizational properties, embedded in their hybrid nature, and institutional legitimacy, thanks to the guarantees they provide.

Suggested Citation

  • Royer, Annie & Menard, Claude & Gouin, Daniel-Mercier, 2012. "Marketing Boards as Hybrid Governance: A study of the Canadian hog industry," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126706, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126706
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    File URL: http://ageconsearch.umn.edu/record/126706/files/Royer.pdf
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    References listed on IDEAS

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    1. Bruno Lame & Robert Romain & Jean-Philippe Gervais & Sami Ben Salha, 2000. "The Collusion-deterring Effect of Pre-attributed Supplies and the Hog Auction in Quebec," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(4), pages 607-622, December.
    2. Francine Lafontaine & Margaret Slade, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
    3. Erba, Eric M. & Novakovic, Andrew M., 1995. "The Evolution of Milk Pricing and Government Intervention in Dairy Markets," EB Series 186308, Cornell University, Department of Applied Economics and Management.
    4. Annie Royer, 2008. "The Emergence of Agricultural Marketing Boards Revisited: A Case Study in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 509-522, December.
    5. Annie Royer, 2011. "Transaction costs in milk marketing: a comparison between Canada and Great Britain," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 171-182, March.
    6. Claude Ménard & Peter G. Klein, 2004. "Organizational Issues in the Agrifood Sector: Toward a Comparative Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 750-755.
    7. repec:mes:jeciss:v:30:y:1996:i:4:p:1212-1216 is not listed on IDEAS
    8. Michele M. Veeman, 1997. "Marketing Boards: The Canadian Experience Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1554-1562.
    9. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    10. Randall E. Westgren, 1994. "Case Studies of Market Coordination in the Poultry Industries," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(4), pages 565-575, December.
    11. Gervais, Jean-Philippe & Lambert, Remy, 2010. "The Simple Economics of Hog Marketing Reforms in Quebec," Working Papers 102014, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
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