Kostas Karantininis

Endogenous Membership in Mixed Duopsonies

Although the role of agricultural cooperatives is well known to many practitioners and economists around the world, in many countries cooperatives are facing new challenging opportunities and problems. Due to the consolidation in the industries upstream and downstream to the agricultural sector, cooperatives are regarded as one possible way to enhance welfare for small producers (Economist). Either in the form of common facilities or through collective bargaining, cooperatives have the potential to improve the terms of trade for their members and contribute to better livelihood in rural areas. However, cooperatives are also facing new difficulties, due to the globalization of markets and the competition with investor-owned firms (IOF). In many countries, ideology is no longer a strong enough reason for farmers to join cooperatives, and more competitive markets imply that this decision must be based mainly on economic terms. In addition, cooperatives have to deal with heterogeneous membership: members may differ in many aspects, namely size of their operations, abilities, and quality of their products. Given these differences, the functioning of the cooperative in the day-to-day operations may become more difficult, and some members may find it more convenient to look for other opportunities and market outlets for their commodities.

Information-based estimators for the non-stationary transition probability matrix: an application to the Danish pork industry

A generalised cross entropy instrumental variables estimator is used to recover the non-stationary transition probability matrix for the Danish pork industry. A technique is also developed to recover missing data points due to category re-specifications. The impact of a set of exogenous variables (prices of pork meat, inputs, and pork substitutes), are evaluated in the form of elasticities. An overall assessment of entry exit and growth of farms is performed.

The Expansion and Evolution of Vertical Coordination in the Quebec Hog Industry

Causes of the expansion of the Quebec hog industry in the 1970s have been debated among economists. From 1975 through 1979, Quebec hog production tripled from approximately 1.5 to 4.5 million hogs annually. Many attribute this growth to government programs alone, while others attribute it to an ordinary response of supply to increased hog prices. In this paper, we examine the evolution of the organizational structure of the Quebec hog industry, which occurred during the years immediately before and during this period. We provide insights into similar growth experiences of increased hog production that have occurred (and are occurring) in other regions of North America.

Growth of Investor Owned and Cooperative Firms in Greek Dairy Industry

This paper examines the factors that affect the annual growth of cooperatives and investor owned firms (IOF) in Greek diary industry over the period 1990–94. A comparison based on both cooperative principals and property rights theory is made between IOFs and cooperatives to study their characteristics. However an empirical work is required to explain differences, if any, in the growth of the two types of firms within the same market. The work examines the determinants of the annual growth and it tests whether significant differences between IOFs and cooperatives exist. Ordinary least squares results show that both diversification and advertising strategies are important determinants for IOF growth, while the cooperative growth depends on capital structure and intensity and these organizations do not effectively apply competitive strategies.

The Network Form of the Cooperative Organization

Cooperative organizations may develop networks, in order to reduce transaction costs, to facilitate knowledge transfer and exchange of resources, and be competitive. The pork industry in Denmark evolved along a path of cooperation and networking. The evolution is path-dependent with roots in the Grundtvig and the folkehojskolen movement in the late 1800s. Today, the Danish pork industry is characterized by three levels of networks, beyond the family farm: the primary cooperative, the federated structure and the policy network. All four levels are interlinked via a nexus of director interlocks.

The Resilience of the Cooperative Form: Cooperative Beehiving by Swedish Cooperatives

The paper identifies the phenomenon of cooperative beehiving. Members de-associate themselves from large cooperatives and form smaller entities, just as bees swarm out of the old crowded beehive in search for a new one. We show in the framework of transaction cost theory that the exiting farmers are those who have experience and advantages in organizing cooperatives and are willing to take risks as entrepreneurs. The new beehives, organized also as cooperatives, rely heavily on outsourcing and start-up assistance plans. Two cases from the Swedish agrifood industry illustrate our claims.

Cross-Atlantic Differences in Biotechnology and GMOs: A Media Content Analysis

Different regulations about the permission and approval rate of biotechnology and genetically modified organisms (GMOs) between the USA and Europe have been controversial for decades. While there is a wide scientific coverage of what may be the cause of this divergence, little is known about the role that popular media play in the related political discourse. We analyzed the media coverage of biotechnology topics in both the USA and UK from 2011-2013 by examining two opinion-leading newspapers. We test the hypothesis that the respective media content reflects differences in transatlantic policies towards biotechnology. The two newspapers differed in reporting intensity but were alike in their content about GMOs: with the central actors being scientists and NGOs, arguing mostly in the field of the agricultural sector, the debate seems to be locked in a stalemate of potential risks re-iterated against potential benefits, with none of the two positions clearly dominating the discourse.

Québec Hog/Pork Industry: Making New Moves or Simply Marking Time?

Recently, a significant switch has occurred in the pricing and procurement practices for hogs purchased by local killing plants from Quebec producers. Previous practice basically resorted to producers pooling-auctioning scheme whereby locally fed animals to be delivered direct from the farm to the killing plants were auctioned out indiscriminately through an outright bidding process among registered buyers. Since January 1994, this practice has been replaced by a complex and somewhat changeable set of practices. They are perhaps best described as a part indexing Quebec-to-U.S. price formula and part auctioning price-setting organization, coupled with some plant-byplant scheduling of preallotted volumes. Since January 1995, no less than 90% of total shipments from Quebec have fallen under preallotted deliveries to registered buyers. Henceforth, this practice is referred to as the 90%-10% QSHPPS (Quebec Slaughter Hog Pricing and Procurement Scheme). One of the most striking aspects of the QSHPPS is that it somehow excludes 90% of total volume purchased by registered buyers from being bidded either lower or even higher than some indexed U.S.-reference prices. And the important question this raises is: Why is it that Qurbec producers are presently putting so much pressure on their own farm-based marketing system to maintain farm prices at the export ceiling? In this paper we address three series of forces related to that question. Our focus is on forces believed to have affected the ways in which the Quebec hog/pork industry (QHPI) has developed, particularly since the 1970s. First, we suggest that QHPI may have gone through four stages of strutural adjustment. Second we investigate the obstacles through which QHPI may have to pass to reach a superior supply chain management strategy. And third, we question the most recent QSHPPS in regard to the new dynamics of the U.S. industry in particular.

Factors influencing extent of traceability along organic fresh produce value chains: case of kale in Nairobi, Kenya

Information asymmetry is often a characteristic present in food value chains. However, high information asymmetry reduces trust and may compromise food safety and quality. Traceability enhances information sharing and disclosure thereby reducing the imperfection. Qualitative and quantitative data was collected from Kenyan certified farmers and organic outlets to generate empirical information on the extent and factors that contribute to traceability along organic kale value chains. Interviews were conducted using a semi-structured questionnaire. Data was analysed using descriptive statistics and factor analysis. Majority (62xa0%) of smallholder producers had a functional traceability system. Factor analysis revealed that organizational activities and personnel perception contribute to traceability in an organization. Variables that contribute to organizational activities are documentation/record keeping (0.754), certification by other quality management standards (0.711), training on food safety and traceability management (0.444) and system monitoring (0.770). Such knowledge can be used by players along the value chain to reduce information asymmetry. The results suggest need for awareness creation among stakeholders on how organizational activities can be used to improve traceability through enhanced information flow for safer and better quality organic products. In addition, perception of personnel which plays an important role in traceability can be improved through training personnel on beneficial consequences of a traceability system.

Framing a New Paradigm for Greek Agriculture

The new paradigm for Greek agriculture requires a pyramid organization that will implement the necessary changes in the Greek agri-food system. The basis of the new system is the Greek Inter-Professional Agriculture and Food Council (GIPAFC). The GIPAFC is founded on four pillars: inter-professional organizations, cooperatives, research and training, related sectors. It incorporates committees and integrates into organizations that handle among others, an export hub for Greek food products.