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Exploring variability across cooperatives: economic performance of agricultural cooperatives in northern Ethiopia

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  • Sebhatu, Kifle T.
  • Gezahegn, Tafesse W.
  • Berhanu, Tekeste
  • Maertens, Miet
  • Passel, Steven Van
  • D'Haese, Marijke

Abstract

The number of agricultural cooperatives increased quickly in Ethiopia since the 1990s. While many papers studied the impact of membership of Ethiopian cooperatives, not much is known on their performance. This study takes a cooperative-level perspective which is unique in an African context. It compares the economic performance proxied by sales revenue and profit of a wide range of agricultural cooperatives in northern Ethiopia. Data were collected from 511 agricultural cooperatives in 12 districts of Tigray. The contributing factors of the performance are analyzed with Ordinary Least Squares regression (OLS) and Heckman selection models. Our results underscore the importance of membership size, total assets, presence of conflict among members, and union membership. Chairperson characteristics and the internal organization of a cooperative seem to be less correlated to performance.

Suggested Citation

  • Sebhatu, Kifle T. & Gezahegn, Tafesse W. & Berhanu, Tekeste & Maertens, Miet & Passel, Steven Van & D'Haese, Marijke, 2021. "Exploring variability across cooperatives: economic performance of agricultural cooperatives in northern Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    • Handle: RePEc:ags:ifaamr:316286
    DOI: 10.22004/ag.econ.316286
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    Cited by:

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    2. Wanglin Ma & Hongyun Zheng & Peng Yuan, 2022. "Impacts of cooperative membership on banana yield and risk exposure: Insights from China," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 564-579, June.
    3. Jasper Grashuis & Florentin Bercu & Andrei‐Mirel Florea & Riana Iren Radu, 2024. "The commercial growth of farmer cooperatives in Romania: A double‐hurdle model analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 113-127, March.
    4. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    5. Meiyuan Wang & Bin He & Jinsong Zhang & Yanan Jin, 2021. "Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
    6. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    7. Paean Hugo Nyawo & Oluwasogo David Olorunfemi, 2023. "Perceived Effectiveness of Agricultural Cooperatives by Smallholder Farmers: Evidence from a Micro-Level Survey in North-Eastern South Africa," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    8. Amiquero, K. (Katty) Sanchez & Wubben, E.F.M. (Emiel) & van Dam, Y.K. (Ynte) & Trienekens, J.H. (Jacques), 2023. "Success and failure factors in agricultural cooperatives," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 14(01), January.

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