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Overconfidence and Hubris: The Demise of Agricultural Co-operatives in Western Canada

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  • Fulton, Murray
  • Larson, Kathy A.

Abstract

The last two decades have seen major changes to the agricultural landscape in Canada and with them major changes to the co-operative sector. The grain handling co-operatives in Western Canada have disappeared, as have their counterparts in the dairy and poultry sectors. Outside of Western Canada, and particularly in Québec, co-ops in the latter sectors have remained successful, while rural retail and farm input co-operatives continue to thrive in all parts of the country. The purpose of this paper is to trace the changes that have occurred in the rural co-operative sector in Canada over the last 10-15 years. Particular attention is paid to the large agricultural co-operatives in Western Canada, since their decline has been particularly acute. It is argued that the overconfidence and hubris of co-op management were major contributing factors to the conversion of these co-ops to IOFs.

Suggested Citation

  • Fulton, Murray & Larson, Kathy A., 2009. "Overconfidence and Hubris: The Demise of Agricultural Co-operatives in Western Canada," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(2), pages 1-35.
    • Handle: RePEc:ags:jlorco:163812
    DOI: 10.22004/ag.econ.163812
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    References listed on IDEAS

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    2. Imanol Basterretxea & Chris Cornforth & Iñaki Heras-Saizarbitoria, 2022. "Corporate governance as a key aspect in the failure of worker cooperatives," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(1), pages 362-387, February.
    3. Johnston Birchall, 2013. "The potential of co-operatives during the current recession; theorizing comparative advantage," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 1-22, May.
    4. Greg Cameron & Francisco Rogelio Pérez Rosado & Dayni Deysi Díaz Mederos, 2020. "Agricultural co-operatives in Canada and Cuba: trends, prospects and ways forward," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 643-660, February.

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