Graduate Thesis Or Dissertation
 

Agricultural cooperatives and their international business arrangements

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https://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/0v838393z

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  • World food markets are becoming increasingly interconnected as firms seek to sell their products not only in domestic markets but in international ones as well. Moreover, processed and high-value consumer-oriented products represent an increasing share of total agricultural exports. This growing international market may have implications for the future competitiveness of agricultural cooperatives in world food trade. The objective of this research is to investigate the arrangements that agricultural cooperatives implement in world food markets and to determine whether cooperatives are successfully competing in these increasingly global venues. Because cooperatives are utility maximizers, a theoretical portfolio model is employed to identify the trade-offs between the risk and expected net returns associated with international arrangements. The empirical model is a reduced form of the portfolio model, in which socio-economic factors are included in a seemingly unrelated regression system. It was discovered that most agricultural cooperatives seek to penetrate market niches by selling processed and specialty products rather than by pursuing high-risk overseas arrangements.
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