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International Business Arrangements Used by Cooperatives

Author

Listed:
  • Reynolds, Bruce J.
  • Spatz, Karen J.

Abstract

U.S. farmer cooperatives have established various organizational and contractual arrangements with foreign firms to expand their global marketing capabilities. However, unlike many U.S. food processing firms, cooperatives have minimal involvement with foreign direct investment (FDI). The comparatively small involvement of cooperatives with FDI is related to their distinctive requirements for member control and performance monitoring. As alternatives to FDI strategies for global marketing, cooperatives have established several types of alliances with foreign firms. These arrangements are often referred to as coventures, franchise partners, or strategic alliances. Various contractual arrangements, including intellectual property licensing, make it possible for many cooperatives to accomplish effective branded products distribution in major foreign markets. Some cooperatives have also developed significant networks of foreign sales agents and have established effective working relationships with these agents.

Suggested Citation

  • Reynolds, Bruce J. & Spatz, Karen J., 1991. "International Business Arrangements Used by Cooperatives," Research Reports 313029, United States Department of Agriculture, Rural Development.
    • Handle: RePEc:ags:urdbrr:313029
    DOI: 10.22004/ag.econ.313029
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    File URL: https://ageconsearch.umn.edu/record/313029/files/co-opRR100.pdf
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    Cited by:

    1. Reynolds, Bruce J., 2012. "Joint Ventures and Subsidiaries of Agricultural Cooperatives," Research Reports 280114, United States Department of Agriculture, Rural Development.
    2. Warman, Marc, 1994. "Cooperative Grain Marketing: Changes, Issues, Alternatives," Research Reports 279979, United States Department of Agriculture, Rural Development.
    3. Buccola, Steven T. & Durham, Catherine A. & Gopinath, Munisamy & Henderson, Erin, 2001. "Food Manufacturing Cooperatives' Overseas Business Portfolios," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-18, July.

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