Potential for cooperative involvement in vertical coordination and value-added activities

Jeffrey S. Royer
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Jeffrey S. Royer: Department of Agricultural Economics, University of Nebraska-Lincoln, 102 H.C. Filley Hall, P.O. Box 830922, Lincoln, NE 68583-0922, Postal: Department of Agricultural Economics, University of Nebraska-Lincoln, 102 H.C. Filley Hall, P.O. Box 830922, Lincoln, NE 68583-0922

Agribusiness, 1995, vol. 11, issue 5, 473-481

Abstract: This article analyzes the comparative advantages and disadvantages farmer cooperatives may have in coordinating the marketing of agricultural commodities through the market channel from the farm level to the processed product level. The distribution of risks among producers and integrators under contract integration is discussed, and factors related to the ownership, capitalization, and governance of cooperatives that may limit their vertical expansion are evaluated. Although contract integration by cooperatives may offer some advantages, efforts by cooperatives to limit their financial risks and the market risks of producers could significantly redefine the nature of these organizations and their relationships with members. © 1995 John Wiley & Sons, Inc.

Date: 1995
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:11:y:1995:i:5:p:473-481

DOI: 10.1002/1520-6297(199509/10)11:5<473::AID-AGR2720110510>3.0.CO;2-W

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