Can cooperative business models solve horizontal and vertical coordination challenges_ A case study in the Australian pineapple industry_CQU.pdf (3.28 MB)
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journal contribution
posted on 2023-08-08, 02:12 authored by John RolfeJohn Rolfe, Delwar AkbarDelwar Akbar, Azad RahmanAzad Rahman, Darshana RajapaksaFor agricultural products, cooperative systems are an alternative to independent business arrangements that can be used to solve the simultaneous need to coordinate supply from disaggregated producers and improve efficiencies. This study analyses how a hybrid cooperative business model can solve horizontal and vertical coordination challenges, drawing on an analysis of a pineapple cooperative business, Tropical Pines, in Queensland. Semi-structured interviews with a cross section of key stakeholders and thematic content analysis are used to identify key factors. Leadership, information sharing, trust, market forecasting, risk sharing, accountability, and provision of agronomic and other support to growers are identified as key factors that distinguish this cooperative hybrid model from more standard business models. Achieving both horizontal and vertical integration maximises resource utilisation and returns to growers, as well as reducing market uncertainty and maximizing product consistency. However, there are also higher costs involved with hybrid models, particularly the focus on communication and engagement required to maintain the trust of growers. These costs increase with the size and complexity of the cooperative, which creates a tension because size and scale are often required to generate the efficiencies and market power necessary to deliver benefits.
History
Volume
10Issue
2Start Page
1End Page
11Number of Pages
11eISSN
2213-2988ISSN
2213-297XPublisher
Elsevier BVPublisher DOI
Additional Rights
CC BY-NC-ND 4.0Language
enPeer Reviewed
- Yes
Open Access
- Yes
Acceptance Date
2022-08-02Author Research Institute
- Centre for Regional Economics and Supply Chain (RESC)
Era Eligible
- Yes