Forward Integration by Farmer Cooperatives: Comparative Incentives and Impacts Report as inadecuate




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A model of a three-stage vertical market structure consisting of agriculturalproducers. an assembler, and a processor is developed to analyze the marketincentives farmer cooperatives may have for integrating forward into processingactivities and to evaluate the comparative impacts of cooperative forward integrationon producers and consumers. Although forward integration by cooperativesgenerally provides benefits to both producers and consumers under fixed-proportionsprocessing technology and constant assembly and processing costs. theexistence of an integration incentive appears to depend upon the ability of thecooperative to restrict the raw product output of its producers to optimal levels.

Subject(s): Agribusiness

Issue Date: 1995

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/46181 Published in: Journal of Cooperatives, Volume 10 Page range: 33-48

Total Pages: 16

Record appears in: National Council of Farmer Cooperatives > Journal of Cooperatives





Author: Royer, Jeffrey S. ; Bhuyan, Sanjib

Source: http://ageconsearch.umn.edu/record/46181?ln=en







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