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Article
Publication date: 5 February 2018

Zuhui Huang and Qiao Liang

During the past four decades, agriculture and rural development in China has scored a great progress. Organization institution in agriculture is one of the domains with drastic…

1812

Abstract

Purpose

During the past four decades, agriculture and rural development in China has scored a great progress. Organization institution in agriculture is one of the domains with drastic innovations. The purpose of this paper is to map the emergence and evolution of various agricultural organizations in China since 1978. Development status and the trend of agricultural organization system are analyzed. Further, the role of farmer cooperatives is discussed.

Design/methodology/approach

Data used in the paper are mainly from statistical yearbooks and documents published by the government including Ministry of Agriculture and Bureau of Industry and Commercial. Both descriptive and deductive analyses are adopted to achieve different analytical purposes.

Findings

The vast small-farm sector, co-existence of various types of organizations, and innovation of other organizations will continue and sustain for a long-time period in China. Despite the fast development of modern farmers and various organizations, it is important that traditional farmers participate effectively in modern agriculture. Farmers act collectively via a cooperative in a desirable way, which determines the central position of farmer cooperatives in the agricultural organization system.

Research limitations/implications

This paper is a qualitative analysis on agricultural organizations in China, yet no quantitative estimation regarding the comparison of various organizations is conducted due to insufficient data.

Originality/value

This paper fills the gap of a comprehensive review of the emergence, development status, and trend of agricultural organizations in China.

Details

China Agricultural Economic Review, vol. 10 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 8 January 2019

Krishna Prasad Pokharel, Madhav Regmi, Allen M. Featherstone and David W. Archer

The purpose of this paper is to identify financial stress and the causes of financial stress for agricultural cooperatives and provide management recommendations to stakeholders…

1030

Abstract

Purpose

The purpose of this paper is to identify financial stress and the causes of financial stress for agricultural cooperatives and provide management recommendations to stakeholders including cooperatives’ managers, boards of directors and lenders.

Design/methodology/approach

This research used the geometric mean of the real rate of return on equity to identify financially stressed agricultural cooperatives. The real rate of return on equity allows the allocation of total financial stress among the return on assets, leverage and interest rate issues.

Findings

This study found that financially non-stressed agricultural cooperatives had a higher rate of return on equity and rate of return on assets, but lower leverage ratios and interest rates than stressed agricultural cooperatives. Further, non-stressed cooperatives had higher total assets and sales compared to stressed cooperatives. This suggests that smaller cooperatives are more likely to face financial stress than larger cooperatives. The decomposition of the financial problem showed that a substantial percentage of financial stress was correlated with a low return on assets or profitability. A smaller percentage of financial stress was due to financing decisions.

Originality/value

This study provides value by measuring the impact of profitability, leverage and interest rate on the financial performance of agricultural cooperatives. Results showed that a substantial proportion of financial stress was associated with a low return on assets. This indicates that profitability is a problem for agricultural cooperatives. This study also examines profitability during a period of volatile returns in production agriculture.

Details

Agricultural Finance Review, vol. 79 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 6 September 2018

Wanglin Ma and Awudu Abdulai

The purpose of this paper is to examine the impact of agricultural cooperative membership on farmers’ decisions to adopt integrated pest management (IPM) technology and to…

1674

Abstract

Purpose

The purpose of this paper is to examine the impact of agricultural cooperative membership on farmers’ decisions to adopt integrated pest management (IPM) technology and to estimate the impact of IPM adoption on farm economic performance.

Design/methodology/approach

An endogenous switching probit model that addresses the sample selection bias issue arising from both observed and unobserved factors is used to estimate the survey data from a sample of 481 apple households in China. A treatment effects model is employed to estimate the impact of IPM adoption on apple yields, net returns and agricultural income. In order to address the potential endogeneity associated with off-farm work variable in estimating both cooperative membership choice specification and IPM adoption specifications, a control function approach is used.

Findings

The empirical results show that cooperative membership exerts a positive and significant impact on the adoption of IPM technology. In particular, farmers’ IPM adoption decision is significantly associated with household and farm-level characteristics (e.g. education, farm size and price knowledge). IPM adoption has a positive and statistically significant impact on apple yields, net returns and agricultural income.

Practical implications

The findings indicate that agricultural cooperatives can be a transmission route in the efforts to proliferate the adoption and diffusion of IPM technology, and increased IPM adoption tends to improve the economic performance of farm households.

Originality/value

Despite the widespread evidence of health and environmental benefits associated with IPM technology, the adoption rate of this technology remains significantly low. This paper provides a first attempt by investigating to what extent and how agricultural cooperative membership affects IPM adoption and how IPM adoption influences farm economic performance.

Details

China Agricultural Economic Review, vol. 11 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 27 July 2012

Vanessa Campos‐Climent, Andreea Apetrei and Rafael Chaves‐Ávila

Agricultural cooperatives have been able to become a strong and consolidated organizational form, although the new challenges of globalization and trade liberalization require…

1998

Abstract

Purpose

Agricultural cooperatives have been able to become a strong and consolidated organizational form, although the new challenges of globalization and trade liberalization require changes in the strategic approach. The requirements of the distribution companies, consumers and government about the concentration of demand, traceability, food safety and respect for the environment had led to a thorough reorganization of agricultural food systems. So it is necessary to undertake a strategic review of horticultural cooperatives in order to conduct a strategic assessment and hence identify the strategic actions to be followed in the coming years. This paper seeks to address these issues.

Design/methodology/approach

An empirical study has been carried out during the first half of 2011 consisting in the application of the Delphi method and sending a questionnaire to experts whose purpose was to gain a view of the strategic situation of horticultural cooperatives in Spain. The Delphi method is a projection technique of the qualitative and subjective type which is appropriate for studies where there is little information on the subject to be analysed, and also for exploratory studies, as it is the case study of examining the role of agricultural cooperatives in coming out of the crisis of Mediterranean agriculture.

Findings

The performed Delphi analysis revealed that Mediterranean agriculture suffers from a severe crisis for which the solutions are hard to find, although the existence of the agricultural cooperatives and certain specific forms of performance and financing can partly improve the described situation. The application of the SWOT analysis based on the opinions of the experts provided sufficient detailed insights of the actual situation of the cooperatives. Thus, from the Delphi SWOT applied to Mediterranean agriculture and agricultural cooperatives, the authors can make some important assessments which are included in their paper.

Originality/value

It is a forward‐looking analysis that tries to give measures to the sector, but measures that come from the sector, in order to face the Mediterranean agriculture crisis.

Details

Management Decision, vol. 50 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 29 April 2014

Ying Zhang and Zu Hui Huang

The purpose of this paper is to investigate risks faced by farmer cooperatives in China, using farmer cooperatives in Zhejiang province as a case. Specifically, the authors…

Abstract

Purpose

The purpose of this paper is to investigate risks faced by farmer cooperatives in China, using farmer cooperatives in Zhejiang province as a case. Specifically, the authors identify risks inherent in two primary types of farmer cooperatives in China (traditional and modern ones) when the external environment changes, the cooperative size expands and heterogeneity in membership widens.

Design/methodology/approach

The authors assume that the “uncertainty of the external environment” and the “deviation of organisational adaptation” constitute the two dynamic factors that generated risks for farmer cooperatives. A survey of 158 farmer cooperatives is obtained in Zhejiang province in 2010, and factor analysis is employed to identify the risks and their critical degrees of traditional and modern cooperatives.

Findings

The results indicate that two types of cooperatives in China face drastically different sets of risks. Traditional cooperatives face larger competitive and human resources risks, whereas modern cooperatives face larger decision-making and behavioural risks. Product market risk, macroeconomic policy risk and financial risk are common critical risks faced by both types of cooperatives.

Originality/value

In this paper, risks in China's farmer cooperatives were empirically studied and systematically discussed. The paper offers a typology to identify risks inherent in two primary types of farmer cooperatives in China (traditional and modern ones) according to property rights arrangements and governance structure.

Details

China Agricultural Economic Review, vol. 6 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 10 December 2020

Pedro Piccoli, Nilton Bianchini Junior, Jeferson Coser and Vilmar R. Moreira

From 2006 to 2016, Brazilian agricultural cooperatives exhibited a sharp increase in sales. Since the operational cycle of these organizations demands a positive net working…

Abstract

Purpose

From 2006 to 2016, Brazilian agricultural cooperatives exhibited a sharp increase in sales. Since the operational cycle of these organizations demands a positive net working capital that is usually funded by debt, the authors examine whether this rise in sales was obtained at the cost of the short-term financial sustainability. As a matter of comparison, the authors conduct the same analysis for Brazilian agricultural public traded companies.

Design/methodology/approach

The authors employ the dynamic analysis of working capital method to measure the short-term financial sustainability of these organizations.

Findings

The authors find that the expansion of net working capital caused by the growth of the revenues of the sampled cooperatives was mostly funded by short-term debt, which rose by 31% in annualized terms. The authors also document that around 60% of these firms displayed a current capital structure that can be considered risky in terms of indebtedness, and that the majority of firms exhibited a non-sustainable growth in the period, what contrasts with the performance presented by Brazilian agricultural publicly traded companies, since only 16% of the firms from this group have shown a non-sustainable growth. This distinction seems to be explained by the lower capacity of agricultural cooperatives to provide resources from their operations.

Originality/value

The authors investigate the short-term financial sustainability of a unique dataset of 65 Brazilian agricultural cooperatives and provide insight for researchers analyzing the dual nature of these firms.

Details

Agricultural Finance Review, vol. 81 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 8 August 2023

Chen Ji, Ni Zhuo and Songqing Jin

Farm income in the agricultural sector is susceptible to natural and market risks. A large body of literature has studied the effects of cooperative membership on household…

Abstract

Purpose

Farm income in the agricultural sector is susceptible to natural and market risks. A large body of literature has studied the effects of cooperative membership on household welfare, technical efficiency, productivity and production behavior, yet little has been known about the impact of cooperative membership on farm income volatility. This paper aims to fill this research gap by investigating the relationship between cooperative membership and farm income volatility of Chinese pig farmers and drawing policy implications.

Design/methodology/approach

This paper examines the effect of cooperative membership on farm income volatility, using data from a two-round survey of pig farmers in China. The authors employ an endogenous switching regression model to address the selection bias issues associated with unobserved factors simultaneously affecting farmers' participation in agricultural cooperatives and income earning activities.

Findings

Using household panel from a two-round survey of 193 pig farmers in China, this analysis highlights two key findings: (1) agricultural cooperative membership has significant and positive effect on farm income stability and (2) the impact of cooperative membership on farm income stability varies with production scale.

Originality/value

This research makes two contributions to the literature. First, this study contributes to the scant literature exploring the relationship between agricultural cooperatives and farm income stability. Second, to the best of the authors' knowledge, this is the first study that explores such relationship in a livestock sector. The pig sector in China and around the developing world has been increasingly challenged by multifaceted risks (e.g. price fluctuations, epidemic diseases, environmental regulations), and understanding the role of agricultural cooperatives in farm income stability of pig farmers is of great practical and policy significance.

Details

China Agricultural Economic Review, vol. 15 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 3 December 2019

Sharon Thembi Xaba, Nyankomo Marwa and Babita Mathur-Helm

The purpose of this paper is to analyse performance (on efficiency) of agricultural cooperatives in Mpumalanga province, South Africa, using Data Envelopment Analysis (DEA). The…

Abstract

Purpose

The purpose of this paper is to analyse performance (on efficiency) of agricultural cooperatives in Mpumalanga province, South Africa, using Data Envelopment Analysis (DEA). The empirical investigation is motivated by the dearth of empirical literature on agricultural cooperatives’ performance measurement and its correlates.

Design/methodology/approach

The study employed DEA and applied the input minimisation constraint. The authors used the data from 19 agricultural cooperatives which had complied with reporting on their annual financial statements (AFS) in the financial year 2014/2015. The input variables were total assets and total expenses, and the output variables were revenue and profit.

Findings

The average technical efficiency was found to be 72 per cent efficient indicating the presence of 28 per cent resource wastages. Of the 19 decision-making units, only 5 (26 per cent) were 100 per cent efficient. It should be noted that the 26 per cent that were technically efficient were also operating at constant returns to scale (optimal resource allocation).

Research limitations/implications

Data limitation was with regard to 19 cooperatives, which means that if more agricultural cooperatives could be analysed, the results will be different.

Practical implications

There are more than 60 agricultural cooperatives in the province, and yet only 19 could report on their AFS. This is an indication that there is a gap in governance, and policy makers and government need to revisit support, over and above funding, and issues of governance have to be strengthened.

Social implications

Agricultural cooperatives are created as vehicles that can stimulate the economy and contribute towards job creation. If the cooperatives do not perform or are not sustainable, the socio-economic conditions of the communities in which they operate will never realise the economic gains.

Originality/value

The study was necessitated by the continued focus on government based on the cooperatives, as there is a dearth of empirical literature separating managers’ reports and empirically proven studies/results.

Details

African Journal of Economic and Management Studies, vol. 11 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 25 February 2020

Bengu Kurtege Sefer

The purpose of this paper is to offer a new gender- and class-sensitive framework for research on rural women entrepreneurship by focusing on the women’s agricultural cooperatives

1093

Abstract

Purpose

The purpose of this paper is to offer a new gender- and class-sensitive framework for research on rural women entrepreneurship by focusing on the women’s agricultural cooperatives in Turkey. Although these cooperatives have been promoted as ideal bottom-to-top organizations to integrate women into economy as entrepreneurs, there has been significant decline in their numbers. This paper tackles with this contradictory situation and intends to offer an alternative research framework on the viability of the women’s agricultural cooperatives in Turkey.

Design/methodology/approach

The paper is built on a critical assessment of the existing literature. It argues that a framework that brings together macro-, meso- and micro-factors will provide a springboard to unfold the gendered processes integral to rural female entrepreneurship in Turkey. Drawing on intersectional theory, the multilayered factors which operate to rural women’s (dis)advantages through the cooperatives are unfolded as policymaking, policy implementation and everyday experiences.

Findings

For policymakers and implementers, it points out the need for a holistic and integrated understanding of rural female entrepreneurship and for re-formulation of policies at the state level. For rural women, it draws attention to the measures required to be taken at the cooperative level to overcome inequalities.

Originality/value

This paper is original in making explicit social, political and economic embeddedness of female entrepreneurship in rural Turkey.

Details

International Journal of Gender and Entrepreneurship, vol. 12 no. 2
Type: Research Article
ISSN: 1756-6266

Keywords

Article
Publication date: 1 May 2019

Solomon Bizuayehu Wassie, Hitoshi Kusakari and Sumimoto Masahiro

Using a recent rural farm household survey, the purpose of this paper is to investigate inclusiveness and effectiveness of agricultural cooperatives in Ethiopia.

Abstract

Purpose

Using a recent rural farm household survey, the purpose of this paper is to investigate inclusiveness and effectiveness of agricultural cooperatives in Ethiopia.

Design/methodology/approach

The study employs a logit model to examine inclusiveness and an endogenous switching regression (ESR) model to evaluate the effectiveness of agricultural cooperatives.

Findings

The results show that agricultural cooperatives are less inclusive of land-poor and illiterate households. On the other hand, the estimated results indicate that cooperatives effectively improved agricultural performance and welfare of its member households – i.e. membership in cooperatives increases yield and income by 1.37 quintal/hectare and 1,804 birr, respectively. Moreover, the result shows that marketing cooperatives effectively increased marketed surplus of their members by 34 percent.

Research limitations/implications

The study has important implications regarding the ways to improve the effectiveness and/or inclusiveness of agricultural cooperatives.

Originality/value

While accounting for the collective behavior of cooperatives, this study uses multiple outcome variables in examining the effectiveness of cooperatives in Ethiopia. Furthermore, this paper employs the ESR model and accounts for potential problems in estimating impact using non-experimental data.

Details

International Journal of Social Economics, vol. 46 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

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