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Building Sustainable Smallholder Cooperatives in Emerging Market Economies: Findings from a Five-Year Project in Kenya

Author

Listed:
  • John E. Meador

    (Rural Policy Centre, Scotland’s Rural College, Edinburgh EH9 3JG, UK)

  • David J. O’Brien

    (Department of Rural Sociology, University of Missouri, Columbia, MO 65211, USA)

  • Michael L. Cook

    (Department of Agricultural and Applied Economics, University of Missouri, Columbia, MO 65211, USA)

  • Greg Grothe

    (Land O’Lakes International Development, Shoreview, MN 55126, USA)

  • LuAnn Werner

    (Land O’Lakes International Development, Shoreview, MN 55126, USA)

  • Daniel Diang’a

    (Land O’Lakes International Development, P.O. Box 45006 G.P.O. 00100, Nairobi, Kenya)

  • Rebecca M. Savoie

    (Department of Rural Sociology, University of Missouri, Columbia, MO 65211, USA)

Abstract

A comparative study of two smallholder dairy cooperatives in Kenya examines the question: what factors are conducive to producing sustainable smallholder cooperatives that can gain entry into the vertical value chain in liberalized post-colonial economies? The relative weight of income advantage; selective individual incentives and, social capital on maintaining member patronage are assessed within variable environmental constraints and opportunities facing different cooperatives. The methodology includes case study observation of the cooperatives during a five-year period, as well as sample surveys of members and non-members that include indicators of dairy income; reasons why farmers elect to join or not join the cooperative; and assessments of the importance of different services provided by the cooperative. The findings show how the relative weight of specific incentives for cooperative membership can vary from one environment to another within the same nation. The most important finding is that maintaining sustainable smallholder cooperatives within an increasingly competitive environment depends on the ability of managers to create business strategies that are compatible with the cooperative’s environmental constraints but, at the same time, incentivize members’ patronage.

Suggested Citation

  • John E. Meador & David J. O’Brien & Michael L. Cook & Greg Grothe & LuAnn Werner & Daniel Diang’a & Rebecca M. Savoie, 2016. "Building Sustainable Smallholder Cooperatives in Emerging Market Economies: Findings from a Five-Year Project in Kenya," Sustainability, MDPI, vol. 8(7), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:656-:d:73721
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    References listed on IDEAS

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    Cited by:

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    2. Carine Pachoud & Etienne Delay & Riccardo Da Re & Maurizio Ramanzin & Enrico Sturaro, 2020. "A Relational Approach to Studying Collective Action in Dairy Cooperatives Producing Mountain Cheeses in the Alps: The Case of the Primiero Cooperative in the Eastern Italians Alps," Sustainability, MDPI, vol. 12(11), pages 1-21, June.
    3. John Elliot Meador & David O’Brien, 2019. "Placing Rwanda’s agriculture boom: trust, women empowerment and policy impact in maize agricultural cooperatives," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 869-880, August.
    4. 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.

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