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

Jim Unterschultz and Rajendra Kumar Gurung

No 24045, Project Report Series from University of Alberta, Department of Resource Economics and Environmental Sociology

Abstract: 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.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 105
Date: 2002
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ualbpr:24045

DOI: 10.22004/ag.econ.24045

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