The Role of Cooperatives in Enhancing Values Chain Approaches; Case Study Evidence

On a global scale, cooperatives within the agricultural sector have played an essential role in creating bargaining power for producers within the market place, predominantly within supply chain settings. In recent times,... [ view full abstract ]

On a global scale, cooperatives within the agricultural sector have played an essential role in creating bargaining power for producers within the market place, predominantly within supply chain settings. In recent times, values chain approaches have facilitated shared values, such as sustainability, equity, fair pricing, differentiated food produce and transparency to come to the fore across the chain. In this paper, the cooperative model, by its very nature, is argued to be conducive to achieving these values. The cooperative model is recognised as an ideal business model as it is both flexible and adaptable and focused both on the interests of the producer and the values of the marketplace. Integrating this model in a values chain setting allows farmer members to access premium markets and have a say in where their produce goes, and for what price. In this paper, we conduct a detailed examination of one such cooperative in the beef sector, which is integrated into a values chain approach. The research employs an ethnographic case study, involving mainly qualitative interviews with farmer members of the case study cooperative, consumers and various partners within the values chain. It aimed to establish why the cooperative was formed and how it operates, what role the cooperative plays within its values chain, how the members feel it meets their needs and how it meets its own objectives and how it has evolved overtime to adapt to a changing marketplace. Findings indicate that in this particular case study, the insinuations of values chain definitions give rise to expected governance structures offering fair and equitable power across the chain. However, it became clear that over time, partners within the chain gained as much influence over the cooperative as the membership in providing long-term direction. Furthermore, these types of cooperative must continually find ways to meet industry demands in remaining progressive and adhering to consumer demand, without diluting their own cooperative values and long-term sustainability