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Potential for Cooperative Involvement in Vertical Coordination and Value-added Activities by Jeffrey S. Royer is a Economics, Econometrics and Finance article available to read on EtoBox.

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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 ofer some advantages, eforts by cooperatives to limit their financial risks and the market risks of producers could signijicantly redefine the nature of these organizations and their relationships with members. 01995 John Wiley & sons, Inc. In the past, product differentiation and valueadded activities usually have occurred in the final stages of the market channel for agricultural commodities. Recently, however, market forces have led to greater opportunities for product differentiation and added value at the farm level. These opportunities have stemmed from: increased consumer demands regarding health, nutrition, and convenience; efforts by food processors to improve

Who reads Potential for Cooperative Involvement in Vertical Coordination and Value-added Activities?

Author

Jeffrey S. Royer

Publisher

John Wiley and Sons; Wiley (John Wiley & Sons); Wiley-Liss Inc; Wiley (ISSN 0742-4477)

Published

1995

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)