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New Generation Co-Operatives (Ngc) As A Model For Value-Added Agricultural Processing In Alberta: Applications To Factors Affecting Choice Of Pricing And Payment Practices By Traditional Marketing And New Generation Co-Operatives

Listed author(s):
  • Unterschultz, James R.
  • Gurung, Rajendra Kumar

This study examines the factors affecting choice of pricing and payment practices by traditional marketing and new generation co-operatives for commodities delivered by their members. These factors include the demographic variables related to type of co-operative organization, level of competition in commodity market, and risk-return perceptions of members and co-operatives. Data for the analysis were obtained through a mail survey. Questionnaires were send to one hundred and ninety five (195) co-operatives in mid-west states of the U.S.A. and Canada. Altogether 93 co-operatives responded to the survey. Mean score analysis, factor analysis and multinomial logit analysis were done. The results indicate that traditional marketing co-operatives are more likely to choose spot market cash price, while new generation co-operatives are more likely to choose pooling practices. Traditional marketing co-operatives appear to be concerned about the members' cash flow needs and members' uncertainty of return; they are also more responsive to increased competitive level in commodity market. New generation co-operatives are more concerned with avoiding the risk of co-operatives' operating deficits and survival of co-operatives. This has implications for new co-operatives just beginning in business.

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Paper provided by University of Alberta, Department of Resource Economics and Environmental Sociology in its series Project Report Series with number 24045.

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Date of creation: 2002
Handle: RePEc:ags:ualbpr:24045
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  1. Dr. Joan R. Fulton & Dr. Michael Popp & Carolyn Gray, 1998. "Evolving Business Arrangements in Local Grain Marketing Cooperatives," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 54-68.
  2. Lence, Sergio H. & Hayenga, Marvin L. & Harl, Neil E., 1999. "The Failure of Multiyear Hedge-to-Arrive Contracts," Choices, Agricultural and Applied Economics Association, vol. 14(1).
  3. E. Neal Blue & Marvin L. Hayenga & Sergio H. Lence & E. Dean Baldwin, 1998. "Futures spread risk in soybean multiyear hedge-to-arrive contracts," Agribusiness, John Wiley & Sons, Ltd., vol. 14(6), pages 467-474.
  4. Kimberly A. Zeuli, 1999. "New Risk-Management Strategies for Agricultural Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1234-1239.
  5. Layton, David F., 2000. "Random Coefficient Models for Stated Preference Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 21-36, July.
  6. R. B. Y. Kim & J. Unterschultz & M. Veeman & P. Jelen, 1997. "Analysis of the Korean beef market: A study of hotel buyers' perspectives of beef imports from three major sources," Agribusiness, John Wiley & Sons, Ltd., vol. 13(4), pages 445-455.
  7. Unterschultz, James R. & Novak, Frank S., 1997. "Flexible Pricing and Payment Alternatives on Canadian Wheat Board Pooling For Wheat," Staff Paper Series 24070, University of Alberta, Department of Resource Economics and Environmental Sociology.
  8. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, July.
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