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Agricultural Cooperative: History
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Contributor: Luyun Yu

An agricultural cooperative is a member-owned and democratically controlled organization established by agricultural producers to collectively manage economic activities, provide services, and improve members’ access to resources, markets, and agricultural inputs. Agricultural cooperatives are based on principles of voluntary membership, member participation, and shared economic benefits, with governance structures in which members typically have decision-making rights according to cooperative rules rather than capital ownership alone [1]. The concept encompasses various forms of collective organization, including cooperatives involved in input procurement, production coordination, processing, marketing, credit provision, and other agricultural services that support farming activities [2]. Unlike conventional investor-owned agricultural enterprises, agricultural cooperatives are primarily organized to serve the economic and operational interests of their members through collective action and mutual benefit [3]. Within agricultural economics and policy contexts, agricultural cooperatives represent institutional arrangements that coordinate farmers’ resources, reduce transaction constraints, and facilitate participation in agricultural markets and value chains [4].

  • agricultural cooperatives
  • collective action
  • farmer organizations
  • agricultural marke

 Agricultural Economics and Policy •  General Agricultural and Biological Sciences •  Agricultural and Biological Sciences •  Life Sciences

References

  1. International Cooperative Alliance (ICA). 1995. Statement on the Cooperative Identity. International Cooperative Alliance.https://www.ica.coop/en/cooperatives/cooperative-identity
  2. Bijman, J., Muradian, R., & Cechin, A. 2011. Agricultural cooperatives and value chain coordination. In: Value Chains, Social Networks and Territorial Development in the Global Economy. Ashgate.https://www.researchgate.net/publication/254834425_Agricultural_Cooperatives_and_Value_Chain_Coordination
  3. Staatz, J. M. 1987. The structural characteristics of farmer cooperatives and their behavioral consequences. In: Royer, J. S. (Ed.), Cooperative Theory: New Approaches. USDA Agricultural Cooperative Service. https://www.rd.usda.gov/sites/default/files/sr18.pdf
  4. Degnet Abebaw; Mekbib G. Haile; The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia. Food Policy 2013, 38, 82-91, 10.1016/j.foodpol.2012.10.003.
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