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Market orientation of the Swedish pork sector

the case of the demutualization of Swedish Meats

Lind, Lena Westerlund (2011). Market orientation of the Swedish pork sector. Diss. (sammanfattning/summary) Uppsala : Sveriges lantbruksuniv., Acta Universitatis Agriculturae Sueciae, 1652-6880 ; 2011:49
ISBN 978-91-576-7593-4
[Doctoral thesis]

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In 2007, the largest slaughterhouse in Sweden, the farmer cooperative Swedish Meats, demutualized. That was the end of cooperative dominance in the Swedish meat industry. Paper VI claims that Swedish Meats demutualized because members no longer perceived the benefits from dealing with the cooperative to exceed the costs. This was possibly due to decreased market transaction costs (external transaction costs) and increased internal transaction costs, e.g. agency costs, caused by the problems of Vaguely Defined Property Rights (VDPR). This thesis explores why the demutualization came about following the hypothesis that lack of market orientation caused lower profitability and poorer member benefits. Market orientation is analyzed using one external and one internal perspective. The external perspective reflects that market orientation requires correct market intelligence regarding consumer needs and correct market signals to the upstream actors. This perspective is discussed using the results from Paper I, II and III in this thesis. Paper I shows that even though pork is an overall low involvement product, branded pork has more involved consumers enabling producers to apply a differentiating strategy. It is indicated that Swedish Meats was successful in communicating that consumers should buy Swedish meat. The potential of differentiating the supply of pork with the help of branding also enabled suppliers to overcome difficulties associated with situational factors, which influence consumer choice. Paper II provides a comparison between results regarding consumers' purchasing decisions studied at the Point-of-Purchase versus in other settings. As the supermarket category manager is the gate-keeper to the pork consumer, the supplier market orientation is dependent on the category manager's decision-making. This is discussed in Paper III. The market intelligence collected from the consumer and retailer has to be considered when the cooperative members make strategic decisions regarding product development and marketing. This internal perspective of market orientation is discussed using the results from paper IV, which indicates that the problems of VDPR aggravated the cooperative's ability to respond to the market conditions.

Authors/Creators:Lind, Lena Westerlund
Title:Market orientation of the Swedish pork sector
Subtitle:the case of the demutualization of Swedish Meats
Series Name/Journal:Acta Universitatis Agriculturae Sueciae
Year of publishing :2011
Number of Pages:58
I.Lind, L. W. (2007). Consumer involvement and perceived differentiation of different kinds of pork – a Means-End Chain analysis. Food Quality and Preference 18, 690-700.
II.Lind, L. W. Methodological implications of conducting Laddering interviews in a Point-of-Purchase setting. Manuscript submitted to Appetite.
III.Lind, L. W. How local producers get access to retail shelf space. Decision-making by supermarket category managers related to smallscale purchases of perishable goods. Accepted for the 21st Annual IFAMA Forum and Symposium, June 20-23, 2011.
IV.Lind, L. W. The reasons behind the demutualization of a meat marketing cooperative – the case of Swedish Meats. Manuscript submitted to Journal of International Food & Agribusiness Marketing.
Place of Publication:Uppsala
Publisher:Dept. of Economics, Swedish University of Agricultural Sciences
ISBN for printed version:978-91-576-7593-4
Publication Type:Doctoral thesis
Full Text Status:Public
Agris subject categories.:E Economics, development, and rural sociology > E20 Organization, administration and management of agricultural enterprises or farms
E Economics, development, and rural sociology > E40 Cooperatives
E Economics, development, and rural sociology > E70 Trade, marketing and distribution
E Economics, development, and rural sociology > E73 Consumer economics
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Business Administration
Agrovoc terms:producer cooperatives, meat industry, enterprises, pork, product development, market intelligence, interviews, economic analysis, sweden
Keywords:Cooperative, Means-End Chain, Laddering, Pork, Retail, Transaction Costs, Vaguely Defined Property Rights
Permanent URL:
ID Code:8119
Department:(NL, NJ) > Dept. of Economics
External funders:Stiftelsen Lantbruksforskning
Deposited By: Doktorand Lena Westerlund Lind
Deposited On:09 May 2011 09:41
Metadata Last Modified:02 Dec 2014 10:46

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