Organizational structures of agriculture cooperatives in China: Evidence from the green vegetable sector

Abstract

China’s agriculture cooperatives are playing a pivotal role in promoting rural development and boosting farmers’ income. As a result of the rapidly changing external environment, diverse types of cooperatives have emerged. However, a comprehensive understanding of the organizational structures, including ownership, control, and benefit rights, of different types of cooperatives, is limited. This study analyzes the organizational structures of two types of cooperatives in China: entrepreneur-led cooperatives and government-led cooperatives. Qualitative methodology was used in this study, including semi-structured interviews with four green vegetable production cooperatives in Shandong province. Results reveal the structural differences between these two types of case cooperatives. Despite the shared ownership, control, and benefit rights among members, entrepreneur-led cooperatives are characterized by the dominance of core members in capital contribution, control rights, and dividend distribution; whereas government-led cooperatives distribute those rights more equally among all members. The findings in this study present a more comprehensive landscape of the organizational structures of China’s cooperatives. Empirically, it demonstrates how cooperatives can evolve and vary across laws and cultures, even within the same legislative background. Additionally, it offers crucial insights for these cooperatives to develop and sustain long-term vitality.