Abstract

The cooperative is one of the most important forms of business in the agricultural sector, due to its special characteristics for small farmers and livestock producers in order to gain access to greater comparative advantages. In addition, cooperatives are a driving force in the social economy, which means that investment in agricultural cooperatives can be seen as a sustainable investment. The aim of this paper is to analyse the preferences of investors in agricultural company cooperatives, looking in depth at the role of the cooperative as a business form. In order to achieve this objective, the choice experiment methodology was applied by carrying out a questionnaire to a total of 282 investors. Latent class models were also used to identify possible groups of investors. Two classes of investors have been identified based on their preferences: owners (return seeking) and workers (risk averse).

Highlights

  • The cooperative in the agricultural sector has several relevant factors to justify its existence and development

  • Cooperatives have a key role to contribute to the efficiency of the control activity, resulting in a form of continuity of the family farms that characterize the agricultural organization

  • Cooperative investment is affected by financial constraints in a relevant way [2], which highlights the importance of knowing how it is possible to invest in this type of financial product

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Summary

Introduction

The cooperative in the agricultural sector has several relevant factors to justify its existence and development. The recognition of the efficiency of agricultural organization is fundamentally determined by two factors, the efficiency of the division of labour and the efficiency of control activity, of which the second reason is more relevant. In this sense, cooperatives have a key role to contribute to the efficiency of the control activity, resulting in a form of continuity of the family farms that characterize the agricultural organization. Cooperative investment is affected by financial constraints in a relevant way [2], which highlights the importance of knowing how it is possible to invest in this type of financial product

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