Ownership structure in agrifood chains: The marketing cooperative

George Hendrikse, Jos Bijman

Research output: Contribution to journalArticleAcademicpeer-review

89 Citations (Scopus)

Abstract

Globalization, technological developments, and consumer concerns press farmers and food producers to enhance product innovation and to seek more efficient production and distribution structures. These changes in agrifood markets shift the relative importance of the investments by different chain partners. It may therefore be necessary to change the allocation of ownership of essential assets to induce agents to make those investments that generate the chain optimum. This article analyzes the impact of ownership structure on investments in a three-tier supply chain from an incomplete contracting perspective. Circumstances are determined in which a marketing cooperative is the unique first-best ownership structure.

Original languageEnglish
Pages (from-to)104-119
Number of pages16
JournalAmerican Journal of Agricultural Economics
Volume84
Issue number1
DOIs
Publication statusPublished - 2002

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