Is there a role for agricultural production cooperatives in agricultural development? Evidence from China

Abstract

In recent years, China witnessed a boom in the formation of agricultural cooperatives. While most of them have been set up as agricultural service cooperatives, there is also the option of forming agricultural production cooperatives (APCs). Although both models stem from a similar long tradition, it was argued that production cooperatives were not competitive, thus having no role in agricultural development. Historically, these cooperatives were formed under specific conditions only. However, in recent years, they have been observed in villages characterised by family agriculture. Taking the example of Chongzhou County (Sichuan Province, China), this exploratory study investigates the salient conditions under which farmers voluntarily join such cooperatives. The results show that APCs still have a role to play in agricultural development after all. Certain conditions have to be met, like government support and recruitment of professional farm managers, but particularly a homogeneous membership and transparent decision-making processes.