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Permanent link (DOI): https://doi.org/10.7939/R3CN6Z231

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New Generation Co-operatives (NGC) as a Model for Value-Added Agricultural Processing in Alberta: Applications to Factors Affecting Choice of Pricing and Payment Practices by Traditional Marketing and New Generation Co-operatives Open Access

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Author or creator
Unterschultz, Jim
Gurung, Rajendra Kumar
Additional contributors
Subject/Keyword
Co-operative
New Generation Cooperatives
market pricing
marketing
Type of item
Report
Language
English
Place
Time
Description
This study examines the factors affecting choice of pricing and payment practices by traditional marketing and new generation co-operatives for commodities delivered by these members. These factors include the demographic variables related to type of co-operative organization, level of competition in commodity market, and risk-return perceptions of members and co-operatives. Data for the analysis were obtained through a mail survey. Questionnaires were sent to one hundred and ninety five (195) co-operatives in mid-west states of the U.S.A. and Canada. Altogether 93 co-operatives responded to the survey. Mean score analysis, factor analysis and multinomial logit analysis were done. The results indicate that traditional marketing co-operatives are more likely to choose spot market cash price, while new generation co-operatives are more likely to choose pooling practices. Traditional marketing co-operatives appear to be concerned about the members' cash flow needs and members' uncertainty of return; they are also more responsive to increased competitive level in commodity market. New generation co-operatives are more concerned with avoiding the risk of co-operatives' operating deficits and survival of co-operatives. This has implications for new co-operatives just beginning in business.
Date created
2002
DOI
doi:10.7939/R3CN6Z231
License information
Creative Commons Attribution-Non-Commercial-No Derivatives 3.0 Unported
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