Profit and Costs of the Development of Rural Cooperative Economic Organizations

Huai-Liang Guo and Xin Wei

Asian Agricultural Research, 2010, vol. 02, issue 08, 5

Abstract: Through analyzing the economic profits of rural cooperative economic organizations, the following conclusions are obtained. The rural cooperative economic organizations can get the economic profits which are in accordance with the demands of market-oriented economy. The rural cooperative economic organizations can benefit from sharing the knight service provided by the government; reducing and avoiding various kinds of risks in operation; applying the agricultural technology and standardization production. Besides, the organizations can share the profits bought along by the standardization production of agricultural production and their members can enjoy the profits bought by socialized service system. In addition, the rural cooperative economic organizations can enjoy the profits produced by the agricultural management integration strategy. What’ more, they can increase profits by reducing the transaction costs; enlarging scale and enjoying the brand advantages. The analyses of the costs of the development of rural cooperative economic organizations mainly include the organizing costs, operation costs, restriction costs and cooperation costs. We think that the slow development of rural cooperative economic organizations is caused by their high operation cost and the impediment of external environment. In the end, the countermeasures on strengthening the research on the theory, promotion, education and training of rural economic cooperative organizations and intensifying the supports on the policies of rural economic cooperative organizations are put forward.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asagre:97629

DOI: 10.22004/ag.econ.97629

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