New generation second degree agri-food cooperatives. Case study
Abstract
In recent years, the concentration processes in agri-food cooperatives in Spain have intensified, seeking greater scale to improve the incomes of their member farmers through cost reductions via economies of scale, improved negotiating positions in the markets by operating with larger volumes, or by expanding the number of services offered. One of the obstacles these processes often encounter is the reluctance of members to lose the legal identity of their cooperatives, which has led to the widespread use of the second-degree cooperative model. This work describes a variant of this model, which we have coined as a new-generation second-degree cooperative, where all operational processes of the member cooperatives are integrated under a single management, extending the benefits of scale. This study illustrates the model through the description of three cases of cooperatives that have adopted this formula. Through interviews with the presidents and executives of the cooperatives involved in the processes, advantages and difficulties are identified, and an improvement in member satisfaction is noted via an increase in the final payment for the delivered product.
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