On the Emergence of Growers' Associations

18 Pages Posted: 26 Aug 2006

See all articles by George W.J. Hendrikse

George W.J. Hendrikse

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

W.J. Jos Bijman

Wageningen UR - Agricultural Economics Research Institute (LEI)

Date Written: 13 2001 6,

Abstract

Cooperatives in agricultural and horticultural markets have faced problems in responding to the increasing differentiation in demand as well as supply. One response is the emergence of growers' associations. They are not vertically integrated forward into a processor/retailer stage of production like cooperatives. This gives processors/retailers the freedom to invest in the direction they most like, given the increasing differentiation in demand. Growers' associations face on the supply side a trade off between self-selection and countervailing power regarding the increasing differentiation in supply. Heterogeneous growers' associations frustrate high quality growers due to the policy of uniform treatment of members, but they are strong in terms of countervailing power of the growers collectively. The opposite holds for homogeneous growers' associations.

Keywords: Growers' association, self-selection, market power, incomplete contracting

JEL Classification: M, M10, L2, L22

Suggested Citation

Hendrikse, George W.J. and Bijman, W.J. Jos, On the Emergence of Growers' Associations (13 2001 6,). Available at SSRN: https://ssrn.com/abstract=370892

George W.J. Hendrikse (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

W.J. Jos Bijman

Wageningen UR - Agricultural Economics Research Institute (LEI) ( email )

Burgemeester Patijnlaan 19
The Hague, 2502 LS
Netherlands
+31-70-3358218 (Phone)
+31-70-3615624 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
70
Abstract Views
1,205
rank
386,996
PlumX Metrics