The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China
In: International Food and Agribusiness Management ReviewSearch for other papers by Yuying Liu in
Current site
Google Scholar
Search for other papers by Wanglin Ma in
Current site
Google Scholar
Search for other papers by Alan Renwick in
Current site
Google Scholar
Search for other papers by Xinhong Fu in
Current site
Google Scholar
Although cooperative organizations aim to enhance agricultural production and marketing, in some countries such as China, not all members sell their products through agricultural cooperatives. This study examines the determinants of using agricultural cooperatives as a marketing channel and its effects on farm income and household income, using survey data collected from cooperative members in low-income regions of Sichuan province in China. We employ both propensity score matching model and inverse probability weighting estimator with regression adjustment to address the sample selection bias issue. The empirical results show that risk attitude, farm size, machine ownership, sales ability, and demonstration level of cooperatives are main factors that determine the members’ decision to use agricultural cooperatives as a marketing channel, and the marketing channel users obtain significantly higher farm income and household income than non-users. Our findings highlight the importance and necessity of promoting agricultural cooperatives as a marketing channel among non-users.
-
Abebaw, D. and M.G. Haile. 2013. The impact of cooperatives on agricultural technology adoption: empirical evidence from Ethiopia. Food Policy 38(1): 82-91.
'The impact of cooperatives on agricultural technology adoption: empirical evidence from Ethiopia ' () 38 Food Policy : 82 -91.
-
Agbo, M., D. Rousselière and J. Salanié. 2015. Agricultural marketing cooperatives with direct selling: a cooperative-non-cooperative game. Journal of Economic Behavior and Organization 109: 56-71.
'Agricultural marketing cooperatives with direct selling: a cooperative-non-cooperative game ' () 109 Journal of Economic Behavior and Organization : 56 -71.
-
Barraud-Didier, V., M.C. Henninger and A. El Akremi. 2012. The relationship between members’ trust and participation in the governance of cooperatives: the role of organizational commitment. International Food and Agribusiness Management Review 15(1): 1-24.
'The relationship between members’ trust and participation in the governance of cooperatives: the role of organizational commitment ' () 15 International Food and Agribusiness Management Review : 1 -24.
-
Bernard, T. and D.J. Spielman. 2009. Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia. Food Policy 34(1): 60-69.
'Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia ' () 34 Food Policy : 60 -69.
-
Biswas, D. 2004. Economics of information in the web economy – towards a new theory? Journal of Business Research 57(7): 724-733.
'Economics of information in the web economy – towards a new theory? ' () 57 Journal of Business Research : 724 -733.
-
Caliendo, M. and S. Kopeinig. 2008. Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys 22(1): 31-72.
'Some practical guidance for the implementation of propensity score matching ' () 22 Journal of Economic Surveys : 31 -72.
-
Chagwiza, C., R. Muradian and R. Ruben. 2016. Cooperative membership and dairy performance among smallholders in Ethiopia. Food Policy 59: 165-173.
'Cooperative membership and dairy performance among smallholders in Ethiopia ' () 59 Food Policy : 165 -173.
-
China Statistics Yearbook (CSY). 2013. China Statistics Yearbook. China Statistics Press, Beijing, China P.R.
-
Ebata, A. and M.A. Hernandez. 2017. Linking smallholder farmers to markets on extensive and intensive margins: evidence from Nicaragua. Food Policy 73(6): 34-44.
'Linking smallholder farmers to markets on extensive and intensive margins: evidence from Nicaragua ' () 73 Food Policy : 34 -44.
-
Fischer, E. and M. Qaim. 2012. Linking smallholders to markets: determinants and impacts of farmer collective action in Kenya. World Development 40(6): 1255-1268.
'Linking smallholders to markets: determinants and impacts of farmer collective action in Kenya ' () 40 World Development : 1255 -1268.
-
Fischer, E. and M. Qaim. 2014. Smallholder farmers and collective action: what determines the intensity of participation? Journal of Agricultural Economics 65(3): 683-702.
'Smallholder farmers and collective action: what determines the intensity of participation? ' () 65 Journal of Agricultural Economics : 683 -702.
-
Gijselinckx, C., L. Zhao and S. Novkovic. 2014. Co-operative innovations in China and the west. Co-operative innovations in China and the West. Palgrave Macmillan, London, UK, pp. 1-292.
Co-operative innovations in China and the west. Co-operative innovations in China and the West , () 1 -292.
-
Gong, Y., K. Baylis, R. Kozak and G. Bull. 2016. Farmers’ risk preferences and pesticide use decisions: evidence from field experiments in China. Agricultural Economics 47(4): 411-421.
'Farmers’ risk preferences and pesticide use decisions: evidence from field experiments in China ' () 47 Agricultural Economics : 411 -421.
-
Hakelius, K. 1996. Farmers’ cooperatives in the minds of farmers. Swedish University of Agricultural Sciences, Uppsala, Sweden.
Farmers’ cooperatives in the minds of farmers , ().
-
Hao, J., J. Bijman, C. Gardebroek, N. Heerink, W. Heijman and X. Huo. 2018. Cooperative membership and farmers’ choice of marketing channels – evidence from apple farmers in Shaanxi and Shandong Provinces, China. Food Policy 74: 53-64.
'Cooperative membership and farmers’ choice of marketing channels – evidence from apple farmers in Shaanxi and Shandong Provinces, China ' () 74 Food Policy : 53 -64.
-
Hoken, H. and Q. Su. 2018. Measuring the effect of agricultural cooperatives on household income: case study of a rice-producing cooperative in China. Agribusiness 34(4): 831-846.
'Measuring the effect of agricultural cooperatives on household income: case study of a rice-producing cooperative in China ' () 34 Agribusiness : 831 -846.
-
Ito, J., Z. Bao and Q. Su. 2012. Distributional effects of agricultural cooperatives in China: exclusion of smallholders and potential gains on participation. Food Policy 37(6): 700-709.
'Distributional effects of agricultural cooperatives in China: exclusion of smallholders and potential gains on participation ' () 37 Food Policy : 700 -709.
-
Ji, C., H. Guo, S. Jin and J. Yang. 2017. Outsourcing agricultural production: evidence from rice farmers in Zhejiang province. PLoS ONE 12(1): e0170861.
'Outsourcing agricultural production: evidence from rice farmers in Zhejiang province ' () 12 PLoS ONE : e0170861 .
-
Jia, X. and J. Huang. 2011. Contractual arrangements between farmer cooperatives and buyers in China. Food Policy 36(5): 655-665.
'Contractual arrangements between farmer cooperatives and buyers in China ' () 36 Food Policy : 655 -665.
-
Jia, X., J. Huang and Z. Xu. 2012. Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China. China Economic Review 23(3): 665-674.
'Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China ' () 23 China Economic Review : 665 -674.
-
Kumar, A., D. Roy, G. Trapathi, P.K. Joshi and R.P. Adhikari. 2016. Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal. IFPRI Discussion Paper 01524. Available at: https://tinyurl.com/ybm3l73o.
-
Kumar, A., S. Saroj, P.K. Joshi and H. Takeshima. 2018. Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India. Food Policy 75: 24-36.
'Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India ' () 75 Food Policy : 24 -36.
-
Läpple, D., T. Hennessy and C. Newman. 2013. Quantifying the economic return to participatory extension programmes in Ireland: an endogenous switching regression analysis. Journal of Agricultural Economics 64(2): 467-482.
'Quantifying the economic return to participatory extension programmes in Ireland: an endogenous switching regression analysis ' () 64 Journal of Agricultural Economics : 467 -482.
-
Ma, W. and A. Abdulai. 2016a. Does cooperative membership improve household welfare? Evidence from apple farmers in China. Food Policy 58: 94-102.
'Does cooperative membership improve household welfare? Evidence from apple farmers in China ' () 58 Food Policy : 94 -102.
-
Ma, W. and A. Abdulai. 2016b. Linking apple farmers to markets: determinants and impacts of marketing contracts in China. China Agricultural Economic Review 8(1): 2-21.
'Linking apple farmers to markets: determinants and impacts of marketing contracts in China ' () 8 China Agricultural Economic Review : 2 -21.
-
Ma, W., A. Abdulai and R. Goetz. 2018. Agricultural cooperatives and investment in organic soil amendments and chemical fertilizer in China. American Journal of Agricultural Economics 100(2): 502-520.
'Agricultural cooperatives and investment in organic soil amendments and chemical fertilizer in China ' () 100 American Journal of Agricultural Economics : 502 -520.
-
Maertens, M. and K. Vande Velde. 2017. Contract-farming in staple food chains: the case of rice in Benin. World Development 95: 73-87.
'Contract-farming in staple food chains: the case of rice in Benin ' () 95 World Development : 73 -87.
-
Marcos-Matas, G., A. Ruggeri and R. Ghelfi. 2018. The role of members’ commitment on agri-food co-operatives’ capitalization, innovation and performance. International Food and Agribusiness Management Review 21(3): 379-390.
'The role of members’ commitment on agri-food co-operatives’ capitalization, innovation and performance ' () 21 International Food and Agribusiness Management Review : 379 -390.
-
Michalek, J., P. Ciaian and J. Pokrivcak. 2018. The impact of producer organizations on farm performance: the case study of large farms from Slovakia. Food Policy 75: 80-92.
'The impact of producer organizations on farm performance: the case study of large farms from Slovakia ' () 75 Food Policy : 80 -92.
-
Mohabir, N., Y. Jiang and R. Ma. 2017. Chinese floating migrants: rural-urban migrant labourers’ intentions to stay or return. Habitat International 60: 101-110.
'Chinese floating migrants: rural-urban migrant labourers’ intentions to stay or return ' () 60 Habitat International : 101 -110.
-
Mojo, D., C. Fischer and T. Degefa. 2017. The determinants and economic impacts of membership in coffee farmer cooperatives: recent evidence from rural Ethiopia. Journal of Rural Studies 50: 84-94.
'The determinants and economic impacts of membership in coffee farmer cooperatives: recent evidence from rural Ethiopia ' () 50 Journal of Rural Studies : 84 -94.
-
Pandolfelli, L., S. Dohrn and J. Athens. 2007. Gender and collective action: a conceptual framework for analysis. CAPRi working papers 64. CAPRi, Washington, DC, USA.
Gender and collective action: a conceptual framework for analysis , ().
-
Qaim, M. 2016. Genetically modified crops and agricultural development. Palgrave Macmillan, New York, NY, USA.
'Genetically modified crops and agricultural development', ().
-
Rao, E.J.O., I. Omondi, A.A. Karimov and I. Baltenweck. 2016. Dairy farm households, processor linkages and household income: the case of dairy hub linkages in east africa. International Food and Agribusiness Management Review 19(4): 95-108.
'Dairy farm households, processor linkages and household income: the case of dairy hub linkages in east africa ' () 19 International Food and Agribusiness Management Review : 95 -108.
-
Rao, E.J.O. and M. Qaim. 2011. Supermarkets, farm household income, and poverty: insights from Kenya. World Development 39(5): 784-796.
'Supermarkets, farm household income, and poverty: insights from Kenya ' () 39 World Development : 784 -796.
-
Ren, Z., Y. Ge, J. Wang, J. Mao and Q. Zhang. 2017. Understanding the inconsistent relationships between socioeconomic factors and poverty incidence across contiguous poverty-stricken regions in China: multilevel modelling. Spatial Statistics 21: 406-420.
'Understanding the inconsistent relationships between socioeconomic factors and poverty incidence across contiguous poverty-stricken regions in China: multilevel modelling ' () 21 Spatial Statistics : 406 -420.
-
Royer, A., J. Bijman and Bitzer, V. 2016. Quality and innovation in food chains. Wageningen Academic Publishers, Wageningen, the Netherlands, pp. 33-62.
Quality and innovation in food chains , () 33 -62.
-
Schipmann, C. and M. Qaim. 2011. Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand. Food Policy 36(5): 666-676.
'Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand ' () 36 Food Policy : 666 -676.
-
Schultz, T.W. 1982. Investing in people: the economics of population quality. University of California Press, Berkeley, CA, USA.
Investing in people: the economics of population quality , ().
-
Shumeta, Z. and M. D’Haese. 2016. Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia. International Food and Agribusiness Management Review 19(4): 37-52.
'Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia ' () 19 International Food and Agribusiness Management Review : 37 -52.
-
StataCorp. 2015. Stata treatment-effects reference manual: potential outcomes/counter actual outcomes. StataCrop LP, College Station, TX, USA, pp. 247-256.
-
Trebbin, A. 2014. Linking small farmers to modern retail through producer organizations – experiences with producer companies in India. Food Policy 45: 35-44.
'Linking small farmers to modern retail through producer organizations – experiences with producer companies in India ' () 45 Food Policy : 247 -256.
-
Verhofstadt, E. and M. Maertens. 2014. Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter? Agricultural Economics 45(S1): 39-52.
'Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter? ' () 45 Agricultural Economics : 39 -52.
-
Williamson, O.E. 1987. Transaction cost economics. The comparative contracting perspective. Journal of Economic Behavior and Organization 8(4): 617-625.
'Transaction cost economics ' () 8 Journal of Economic Behavior and Organization : 617 -625.
-
Wossen, T., T. Abdoulaye, A. Alene, M.G. Haile, S. Feleke, A. Olanrewaju and V. Manyong. 2017. Impacts of extension access and cooperative membership on technology adoption and household welfare. Journal of Rural Studies 54: 223-233.
'Impacts of extension access and cooperative membership on technology adoption and household welfare ' () 54 Journal of Rural Studies : 223 -233.
-
Wu, L.Y., K.Y. Chen, P.Y. Chen and S.L. Cheng. 2014. Perceived value, transaction cost, and repurchase-intention in online shopping: a relational exchange perspective. Journal of Business Research 67(1): 2768-2776.
'Perceived value, transaction cost, and repurchase-intention in online shopping: a relational exchange perspective ' () 67 Journal of Business Research : 2768 -2776.
-
Zhu, Q., C.J. Wachenheim, Z. Ma and C. Zhu. 2018. Supply chain re-engineering: a case study of the Tonghui Agricultural Cooperative in Inner Mongolia. International Food and Agribusiness Management Review 21(1): 133-160.
'Supply chain re-engineering: a case study of the Tonghui Agricultural Cooperative in Inner Mongolia ' () 21 International Food and Agribusiness Management Review : 133 -160.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 521 | 328 | 18 |
| PDF Views & Downloads | 550 | 358 | 16 |
The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China
In: International Food and Agribusiness Management ReviewSearch for other papers by Yuying Liu in
Current site
Google Scholar
PubMed
Search for other papers by Wanglin Ma in
Current site
Google Scholar
PubMed
Search for other papers by Alan Renwick in
Current site
Google Scholar
PubMed
Search for other papers by Xinhong Fu in
Current site
Google Scholar
PubMed
Although cooperative organizations aim to enhance agricultural production and marketing, in some countries such as China, not all members sell their products through agricultural cooperatives. This study examines the determinants of using agricultural cooperatives as a marketing channel and its effects on farm income and household income, using survey data collected from cooperative members in low-income regions of Sichuan province in China. We employ both propensity score matching model and inverse probability weighting estimator with regression adjustment to address the sample selection bias issue. The empirical results show that risk attitude, farm size, machine ownership, sales ability, and demonstration level of cooperatives are main factors that determine the members’ decision to use agricultural cooperatives as a marketing channel, and the marketing channel users obtain significantly higher farm income and household income than non-users. Our findings highlight the importance and necessity of promoting agricultural cooperatives as a marketing channel among non-users.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 521 | 328 | 18 |
| PDF Views & Downloads | 550 | 358 | 16 |
