Category, Characteristics and Influence Mechanism of Farmers’ Cooperatives in China——Based on the Analysis of 8 Typical Case

Hua Wen and Xuan Jiang

International Business Research, 2020, vol. 13, issue 12, 1

Abstract: Since the beginning of this century, farmers' cooperatives have been developing rapidly in China. Based on the principles of classic cooperatives, this paper investigates the farmers' cooperatives in practice in China. It is found that the cooperatives in practice do not conform to the principles of classic cooperation, and have strong characteristics based on realistic conditions. In practice, from the perspective of industrial chain, China's farmer cooperatives can be divided into four categories- engaged in production, engaged in "production + sales", engaged in "production + processing + sales" and providing services, and there are significant differences in the operation mode and governance structure of all kinds of cooperatives. For the reasons behind it, the author investigates the concentration degree of different types of cooperatives in the operation of various agricultural products, and found that different category of products have different demands on the functions of cooperatives, which makes the operation mode and governance structure of cooperatives formed for different functional needs present diversified characteristics. In addition, the author also points out that although there are essential differences between the farmers' cooperatives in practice and those in the classical, they can still play their unique functions, that is to say, they can influence the identity and income of farmers by changing the utilization of production elements in the traditional agricultural management mode.

Date: 2020
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