What Makes Producers Participate in Marketing Cooperatives? The Northern Greece Case

Aristotelis Batzios,Achilleas Kontogeorgos,Panagiota Sergaki,Fotios Chatzitheodoridis

doi:10.3390/su13041676

Abstract

Marketing cooperatives are gaining popularity in the supply chain management of fruits and vegetables (F&V) due to consumers’ increasing desire to purchase cooperative products as well as producers’ willingness to reinforce their bargaining power in the market. The main purpose of this empirical study is to investigate the most important factors that motivate Greek producers to participate in marketing cooperatives, as well as those motives that discourage them. The prefecture of Imathia, in the northern part of Greece, was chosen because it is characterized by a high involvement of cooperatives, wholesalers and retailers in F&V trading. A structured questionnaire was answered by 61 producers of Imathia in 2020. The results indicate that producers recognize that they ensure safer financial transactions and direct distribution of their fresh agricultural produce via marketing cooperatives. Moreover, the study showed that there is a statistically significant difference in the motives of participation in a marketing cooperative that has bargaining power and direct distribution of fresh agricultural produce between the three categories of education level. However, producers appeared to agree that (1) the great divergence in members’ reasons for participation in a marketing cooperative and (2) the inability to take collective decisions by the general assembly are the most important disincentives for participation in marketing cooperatives.

Highlights

Accepted: 1 February 2021The fruit and vegetable (F&V) market is an extremely widespread, complex and global network
A number of players are involved in the F&V supply chain, such as agricultural input producers, producers, manufacturers, cooperatives, packaging enterprises, transport businesses, storage warehouses, distributors and wholesales, markets and retailers [1,2]
Collective actions in agriculture is a remarkable business model that facilitates the presence of small producers in the market [5,6,7,8]. They aim at both boosting the welfare of their members and the added value of agriculture [9,10] Some of their classical weapons in this effort are the empowerment of the bargaining power of producers, the reduction of production cost and the networking among members [11]

Summary

Introduction

Accepted: 1 February 2021The fruit and vegetable (F&V) market is an extremely widespread, complex and global network. A number of players are involved in the F&V supply chain, such as agricultural input producers, producers, manufacturers, cooperatives, packaging enterprises, transport businesses, storage warehouses, distributors and wholesales, markets and retailers [1,2]. Collective actions in agriculture (cooperatives, producer organizations, producer groups, social-cooperative enterprises) is a remarkable business model that facilitates the presence of small producers in the market [5,6,7,8] They aim at both boosting the welfare of their members and the added value of agriculture [9,10] Some of their classical weapons in this effort are the empowerment of the bargaining power of producers, the reduction of production cost and the networking among members [11].

Objectives

Methods

Results