The Organizational Nature of Agricultural Cooperatives: A Perspective from the Farm Problem Theory

Journal of Rural Cooperation, Vol. 33, No. 2, pp. 139-151

11 Pages Posted: 15 Dec 2006

See all articles by Vladislav L. Valentinov

Vladislav L. Valentinov

Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Abstract

The paper uses the farm problem theory as the framework for comparative analysis of cooperative, market and hierarchical organization in the agrifood system. In order to conduct this analysis, the paper proposes the organizational economics approach to the farm problem which supplements the traditional approaches explaining it in terms of low opportunity costs and high mobility costs of factors employed in agriculture. According to the proposed organizational economics approach, the farm problem is the outcome of inappropriateness of hierarchical and market organization for effective coordination of agricultural activities. The central argument of the paper is that agricultural cooperatives are important because they partially perform the coordination functions not effectively delivered in agriculture by the conventional hierarchical and market types of economic organization.

Keywords: cooperative, market, hierarchy, farm problem, structural change

JEL Classification: L22, Q10

Suggested Citation

Valentinov, Vladislav L., The Organizational Nature of Agricultural Cooperatives: A Perspective from the Farm Problem Theory. Journal of Rural Cooperation, Vol. 33, No. 2, pp. 139-151. Available at SSRN: https://ssrn.com/abstract=951932

Vladislav L. Valentinov (Contact Author)

Leibniz Institute of Agricultural Development in Transition Economies (IAMO) ( email )

Theodor-Lieser-Str.2
Halle, 06120
Germany

HOME PAGE: http://www.iamo.de

Register to save articles to
your library

Register

Paper statistics

Downloads
311
Abstract Views
1,498
rank
97,068
PlumX Metrics