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Forward Integration by Farmer Cooperatives: Comparative Incentives and Impacts

Author

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  • Royer, Jeffrey S.
  • Bhuyan, Sanjib

Abstract

A model of a three-stage vertical market structure consisting of agricultural producers. an assembler, and a processor is developed to analyze the market incentives farmer cooperatives may have for integrating forward into processing activities and to evaluate the comparative impacts of cooperative forward integration on producers and consumers. Although forward integration by cooperatives generally provides benefits to both producers and consumers under fixed-proportions processing technology and constant assembly and processing costs. the existence of an integration incentive appears to depend upon the ability of the cooperative to restrict the raw product output of its producers to optimal levels.

Suggested Citation

  • Royer, Jeffrey S. & Bhuyan, Sanjib, 1995. "Forward Integration by Farmer Cooperatives: Comparative Incentives and Impacts," Journal of Cooperatives, NCERA-210, vol. 10, pages 1-16.
    • Handle: RePEc:ags:jlcoop:46181
    DOI: 10.22004/ag.econ.46181
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    Cited by:

    1. Cotterill, Ronald W., 1997. "The Performance of Agricultural Marketing Cooperatives in Differentiated Product Markets," Journal of Cooperatives, NCERA-210, vol. 12, pages 1-13.
    2. Asirvatham, Jebaraj & Bhuyan, Sanjib, 2004. "Economic Impact of Vertical Coordination: A Multi-stage, Multi-player Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20400, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Richards, Timothy J. & Kagan, Albert & Mischen, Pamela & Adu-Asamoah, Richard, 1996. "Marketing Order Suspensions And Fresh Lemon Retail-Fob Margins," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-15, December.
    4. Hailu, Getu & Jeffrey, Scott R. & Goddard, Ellen W. & Ng, Desmond W., 2005. "Regulatory Environment, Cooperative Structure, and Agency Costs for Cooperative Agribusiness Firms in Canada: Comparative Case Studies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(2), pages 1-11, July.

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    Keywords

    Agribusiness;

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