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A farmer-controlled business from a farmer perspective

Nilsson, Jerker and Liljenstolpe, Carolina and Westerlund Lind, Lena and Liang, Se (2014). A farmer-controlled business from a farmer perspective. Journal on chain and network science. 14 :3 , 201-211
[Research article]

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Official URL: http://dx.doi.org/10.3920/JCNS2014.0244


The ownership of food processing firms affects farmers supplying those firms with agricultural products. This study examined the effects of supplying either a farmer-controlled business (FCB) or competing investor-owned firms (IOFs). An FCB is owned and controlled partly by farmers and partly by external investors. Analysis of data obtained from a survey of pig producers in Sweden indicated that partial ownership by farmers resulted in them perceiving the FCB as having some co-operative traits. The FCB suppliers were less inclined to exit, used their voice more, and showed greater loyalty than the IOF suppliers. In the long term, however, the farmers' relatively positive view of FCBs might change because this organizational form contains inherent conflicts between the interests of the farmers and the external investors. As competition intensity increases and primary agriculture becomes increasingly concentrated, the co-operative features of an FCB are due to become vaguer over time. These problems may threaten the long-term existence of FCBs.

Authors/Creators:Nilsson, Jerker and Liljenstolpe, Carolina and Westerlund Lind, Lena and Liang, Se
Title:A farmer-controlled business from a farmer perspective
Series Name/Journal:Journal on chain and network science
Year of publishing :2014
Depositing date:2015
Page range:201-211
Number of Pages:12
Publisher:Wageningen Academic Publishers
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Published version
Full Text Status:Public
Agris subject categories.:X Agricola extesions > X70 Economics and management
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Business Administration
Agrovoc terms:agriculture, economics
Keywords:farmer-controlled business, co-operative, investor-owned firm, agriculture, member
Permanent URL:
ID Code:11856
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:11 Feb 2015 13:55
Metadata Last Modified:09 Sep 2020 14:17

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