Ireland’s largest beef processing cooperative: A venture beyond their control

Abstract

This paper investigates the rapid growth of Irish beef processing cooperatives during the 1960s and 1970s. They failed to hold their market position, selling out to private-owned business by the 1980s. With the benefit of hindsight this paper identifies factors influencing their development and demise creating a picture of the business environment during their lifetime. Interviews and historical sources are used to build the story of the largest farmer-owned beef processing cooperative Cork Marts IMP. The roles of influential actors and institutions at that time are examined through the functions of an Innovation System. This paper identifies weakness such as firm structures, loyalty, technical skills and knowledge in terms of strategic management, financial planning and marketing, which all played a role in its failure. This marketing innovation of the 1960s, while brave, might now be considered naive and unlucky in having to deal with challenges that were beyond its control. This paper provides insights into competition, scale and supplier power impacting its failure and how scaling export orientated cooperatives might consider a systems-based approach in strategic planning for supporting sustained economic development. Such failures have scarred Irish agriculture as no farmer-owned beef processing business has challenged the dominance of privately-owned enterprises.