Some like to join, others to deliver: an econometric analysis of farmers' relationships with agricultural cooperatives

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36 Citations (Scopus)

Abstract

In many European countries, farmers are a member of a processing or marketing co-operative, and most of these farmers deliver their products to that co-operative. However, an extensive data set of Italian farmers shows that not all members deliver to their co-op, and that there are also non-members that deliver to co-ops. Using theoretical arguments from the New Institutional Economics literature, a bivariate probit model is estimated to explain co-op membership and delivery jointly. Results show that membership and delivery are indeed linked, but also that different factors influence farmers' decisions on membership and delivery.
Original languageEnglish
Pages (from-to)51-74
JournalEuropean Review of Agricultural Economics
Volume39
Issue number1
DOIs
Publication statusPublished - 2012

Keywords

  • imperfect competition
  • economics
  • organization
  • fairness
  • markets

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