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Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative

Author

Listed:
  • Zoltán Bakucs

    (Corvinus University of Budapest Budapest Hungary)

  • Imre Fertő

    (Corvinus University of Budapest Budapest Hungary)

  • Gábor G. Szabó

    (Research Centre for Economic and Regional Studies of the Hungarian Academy of Sciences Budapest Hungary)

Abstract

The paper analyses the potential benefits of marketing cooperatives in Hungary, employing a transaction cost economics framework. We found that the purchased quantity, the existence of contracts, flexibility and trust are the most important factors farmers consider when selling their products via a cooperative. The most striking result is that diversification has positive influences on the share of cooperatives in farmers’ sale. Furthermore, farmers with larger bargaining power have less willingness to sell their product to the cooperative. Surprisingly, asset specificity has rather negative effects on the share of cooperatives in members’ sales.

Suggested Citation

  • Zoltán Bakucs & Imre Fertő & Gábor G. Szabó, 2012. "Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative," Society and Economy, Akadémiai Kiadó, Hungary, vol. 34(3), pages 453-468, September.
    • Handle: RePEc:aka:soceco:v:34:y:2012:i:3:p:453-468
    Note: The research was supported by OTKA (grant number K68467) and by the Bolyai János Scholarship.
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    Citations

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    Cited by:

    1. Bakucs, Lajos Zoltan & Ferto, Imre, 2013. "The role of trust in contractual relationships," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158870, Agricultural Economics Society.
    2. Zsófia Benedek & Imre Fertő & Lajos Baráth & József Tóth, 2014. "Differences of small-scale farmers and the related short agri-food value chains An empirical evidence from Hungary," CERS-IE WORKING PAPERS 1409, Institute of Economics, Centre for Economic and Regional Studies.
    3. Benedek, Zsófia & Fertő, Imre & Baráth, Lajos & Tóth, József, 2014. "Factors influencing the decision of small-scale farmers on marketing channel choice: a Hungarian case study," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182747, European Association of Agricultural Economists.
    4. Zsófia Benedek & Imre Fertő & Adrienn Molnár, 2018. "Off to market: but which one? Understanding the participation of small-scale farmers in short food supply chains—a Hungarian case study," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 383-398, June.
    5. Zsófia Benedek & Pál Géza Balogh & Lajos Baráth & Imre Fertő & Veronika Lajos & Éva Orbán & Gábor G. Szabó & Gusztáv Nemes, 2020. "The Kings of the Corona Crisis: The Impact of the outbreak of Covid‐19 on Small‐scale Producers in Hungary," EuroChoices, The Agricultural Economics Society, vol. 19(3), pages 53-59, December.

    More about this item

    Keywords

    contract enforcement; co-operative; transition economy; Tobit model;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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