Markus Hanisch

The Cooperative Yardstick Revisited: Panel Evidence from the European Dairy Sectors

Abstract Milk is an important agricultural product that has traditionally been processed by cooperatives. Across member states of the EU-27, however, large variation exists between the national market shares of cooperatives in dairy processing. Theoretical models suggest that a strong cooperative sector secures competitive regional prices for agricultural produce. Empirical studies which seek to quantify these effects are rare though. We use panel data to study the impact of cooperative strength – measured by market shares – on national farm gate milk prices in the EU-27 for the period from 2000 to 2010. Our results reveal a positive effect of cooperative market share on price that is relatively large and robust over different specifications of the econometric model. We conclude that dairy cooperatives have a pro-competitive effect and that exemptions for cooperatives from anti-trust regulation may be justified.

The Effect of Heterogeneity and Freedom of Participation on Collective Action in Rural Self-Help Groups Combining In-Depth Interviews With Curve Estimation

In India, self-help groups aim to eradicate poverty. Groups access microcredit via banks, government, or nongovernmental organizations. A vast but inconclusive literature exists on the impacts of heterogeneity and freedom of participation on group functioning. We used survey data and curve estimation to study the effect of these variables on collective action. Survey results were triangulated with in-depth interviews. The applied mixed methods design is useful for empirical studies where the functional form of one variable on the other variable is contested and no a priori model exists for theory-driven deductive empirical testing. We found that both variables are mediated by their institutional context. Heterogeneity promotes the emergence of leadership in bank groups, but it reduces collective action in government-initiated groups.

Dynamics of peri-urban agricultural development and farmers' adaptive behaviour in the emerging megacity of Hyderabad, India

This paper describes the adaptation of agricultural management practices due to structural changes in the urban periphery of Hyderabad, India. We investigate structural-change drivers along with the most common types of adaptation realised by peri-urban farmers and the corresponding environmental impacts. From 120 farmer interviews, in which qualitative and quantitative data were collected, we found that increasing costs for agricultural inputs such as labour and land have motivated farmers to intensify water, machine and chemical use, thereby creating problematic environmental impacts. In addition, farmers also resort to part-time farming and organise efforts to share family labour. Based on these findings, we discuss agricultural policies and strategies within the framework of environmental planning and management for the Greater Hyderabad Area (GHA), drawing policy-design conclusions that may enable better integration of farming into the on-going process of megacity development.

The structural effect of cooperatives on price volatility in the European dairy sector

ABSTRACT Theoretical models and empirical evidence suggest that high market shares of cooperatives can force investor-oriented firms to pay higher producer prices within a region. In the same vein, cooperatives may force investor-oriented firms to reduce price volatility. We use panel data from 27 European Union member states over the period 2001–2015 to investigate how the market share of cooperatives in a country affects milk price volatility. Our key finding is that a higher market share of cooperatives reduces price volatility at the national level. Volatility is influenced by a number of other variables, such as fluctuation in raw milk production, oil price volatility spillover and the number of dairy processors. Policymakers should consider that the promotion of cooperatives might positively affect price stability in the dairy sector.

Farm Gate Prices for Non-Varietal Wine in Argentina: A Multilevel Comparison of the Prices Paid by Cooperatives and Investor-Oriented Firms

Abstract In this paper, we use a unique data set of the prices paid to farmers in Argentina for grapes to examine the prices paid by non-varietal wine processing cooperatives and investor-oriented firms (IOFs). Motivated by contrasting theoretical predictions of cooperative price effects generated by the yardstick of competition and property rights theories, we apply a multilevel regression model to identify price differences at the transaction level and the departmental level. On average, farmers selling to cooperatives receive a 3.4 % lower price than farmers selling to IOFs. However, we find cooperatives pay approximately 2.4 % more in departments where cooperatives have larger market shares. We suggest that the inability of cooperatives to pay a price equal to or greater than the one paid by IOFs can be explained by the market structure for non-varietal wine in Argentina. Specifically, there is evidence that cooperative members differ from other farmers in terms of size, assets and the cost of accessing the market. We conclude that the analysis of cooperative pricing cannot solely focus on the price differential between cooperatives and IOFs, but instead must consider other factors that are important to the members.

Project Steps in Detail

This chapter illustrates relevant steps within the pilot project’s chronology, the timeframe of which ranged from October 2011 to June 2013. The sections are organised into three chronological phases: preparation and planning, implementation and evaluation.

Strategies and Existing Projects

There have been various attempts, mostly put into practice through projects, to break the vicious circle of problems in Indian agricultural electrical energy supply. Such projects may be initiated by state governments, foreign development agencies, or are community driven. Projects with high budgets have often focused on large-scale technical interventions, where participation of local stakeholders is not required. In contrast, projects with low budgets have often involved local stakeholders and yielded low-cost technical solutions that can be implemented by farmers. In this chapter, we review recent and ongoing projects and discuss different implementation strategies.

Background of the Agricultural Power Supply Situation in India and Andhra Pradesh

In this chapter, we discuss the power supply situation in India and Andhra Pradesh, beginning with a brief historical outline and then describing the current state and structure of the power sector, including its main challenges. We focus on agricultural power supply, exemplifying its major issues and discussing the existing low-equilibrium trap of power quality.

Constraints on Rural Governance in the European Union: A Role for Co-operative Associations?

In this contribution I argue that the concept of polycentricity that has evolved from the body of literature on governance problems in metropolitan areas (Tiebout, 1956, Ostrom, Tiebout, & Warren, 1961, Marks & Hooghe, 2003, Frey & Eichenberger, 1999) may not be easily adapted to address current governance problems in the rural areas of the EU-27. The chapter explores some of the likely limits of the concept in the context of rural development in the European Union. I first explore the foundations of the concept of polycentricity, along with its assumptions and theoretical conclusions. I then characterize typical contemporary problems in the rural areas of the EU after the enlargement from EU-15 to EU-27. I then show that phenomena like rural poverty, local budget crises, and scale economies in service provision in areas like health-care, infrastructure and education lead to situations where the assumptions of multi-level governance are not met. Finally, I draw a few theoretical and practical conclusions, which are in line with the basic tenets of the concept of polycentricity, about the potential of cooperatives for solving governance problems in the rural areas of the European Union.

Postsozialistische Landwirtschaft in Mittel- und Osteuropa

Mit dem Begriff „Agrartransformation“ ist im Entwicklungslanderzusammenhang haufig der Ubergang von der Subsistenzlandwirtschaft zur arbeitsteiligen marktorientierten Landwirtschaft bezeichnet worden (Staatz 1998: 1), wahrend mit Bezug auf Mittel- und Osteuropa der gegenwartige Ubergang von der planwirtschaftlich hin zu einer marktwirtschaftlich gepragten Landwirtschaft gemeint ist. Dort mussten die Agrarsektoren seit 1990 durchweg Preisliberalisierung, Subventionsabbau, stabilitatspolitische Masnahmen zur Bekampfung der Inflation und Einkommensruckgange in den nicht-landwirtschaftlichen Bereichen und die entsprechenden Nachfrageruckgange bei Lebensmitteln verkraften. Die Reform der Eigentums- und Verfugungsrechte an Boden und landwirtschaftlichem Sachvermogen stellt einen weiteren wichtigen Einflussfaktor fur die Neuorientierung in der Landwirtschaft dar.