Abstract
Besides their contributions to the sustainable development of the value chains in the primary
sector, agricultural cooperatives (co-ops) have long been criticized for their capital constraints
because they have traditionally adhered to exclusive members‟ ownership in the form of
direct investments or retained patronage refunds. However, many marketing co-ops, in order
to successfully adapt to the industrialization of agricultural and food markets, have relaxed
their traditional finance principle. The extent to which co-ops relax this definitional principle
influences the formation of their ownership financing structure. That is, co-ops range from
traditional (e.g., general reserves) to a more individualized, IOF-like (investor-owned firm)
ownership model. Numerous co-ops in the US and EU allow for individualized equity shares,
invite non-member parties to partially finance their operations, and publicly list parts of their
equity stock. A question that arises is what actually drives the decision of member-patrons to
invest in a marketing co-op‟s equity structure, which is formed either using traditional
funding sources (e.g., general reserves) or more individualized ones (e.g., individual
certificates and loans).The objectives of this paper is to examine what drives members‟ choice
for cooperative ownership financing and the impact of heterogeneity on their choice, attitudes,
and perceptions. To address our objectives, we conducted field studies with 225 members of
two marketing co-operatives: one involved in horticulture and the other in dairy production.
To the best of our knowledge, this is the first empirical study that examines the drivers
(attitudes and perceptions) of members‟ choice for different sources of marketing co-ops‟
equity. Our results indicate the diversity in members‟ choices, risk behavior, perceptions, and
attitudes. Knowledge of the existence of member-segments and an understanding of their
preferences may be useful to co-op policy makers to better evaluate efforts by member subgroups who may strive to influence the make-up and implementation of co-op equity
policies.
sector, agricultural cooperatives (co-ops) have long been criticized for their capital constraints
because they have traditionally adhered to exclusive members‟ ownership in the form of
direct investments or retained patronage refunds. However, many marketing co-ops, in order
to successfully adapt to the industrialization of agricultural and food markets, have relaxed
their traditional finance principle. The extent to which co-ops relax this definitional principle
influences the formation of their ownership financing structure. That is, co-ops range from
traditional (e.g., general reserves) to a more individualized, IOF-like (investor-owned firm)
ownership model. Numerous co-ops in the US and EU allow for individualized equity shares,
invite non-member parties to partially finance their operations, and publicly list parts of their
equity stock. A question that arises is what actually drives the decision of member-patrons to
invest in a marketing co-op‟s equity structure, which is formed either using traditional
funding sources (e.g., general reserves) or more individualized ones (e.g., individual
certificates and loans).The objectives of this paper is to examine what drives members‟ choice
for cooperative ownership financing and the impact of heterogeneity on their choice, attitudes,
and perceptions. To address our objectives, we conducted field studies with 225 members of
two marketing co-operatives: one involved in horticulture and the other in dairy production.
To the best of our knowledge, this is the first empirical study that examines the drivers
(attitudes and perceptions) of members‟ choice for different sources of marketing co-ops‟
equity. Our results indicate the diversity in members‟ choices, risk behavior, perceptions, and
attitudes. Knowledge of the existence of member-segments and an understanding of their
preferences may be useful to co-op policy makers to better evaluate efforts by member subgroups who may strive to influence the make-up and implementation of co-op equity
policies.
| Original language | English |
|---|---|
| Pages | 57 |
| Publication status | Published - 2022 |
| Event | 182nd (European Association of Agricultural Economists) EAAE Seminar on “Sustainability via biodiverse agri-food value chains - CIHEAM-Mediterranean Agronomic Institute of Chania (MAICh), Chania, Greece Duration: 14 Sept 2022 → 15 Sept 2022 |
Conference
| Conference | 182nd (European Association of Agricultural Economists) EAAE Seminar on “Sustainability via biodiverse agri-food value chains |
|---|---|
| Country/Territory | Greece |
| City | Chania |
| Period | 14/09/22 → 15/09/22 |
Keywords
- MARKETING COOPERATIVES