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Item Value chain integration for rural co-operatives : comparative analysis in the rice sector in Sri Lanka : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Agribusiness at Massey University, Palmerston North, New Zealand(Massey University, 2021) Fernando, Prageeth SanjayaAgri-food industry is transforming in developing countries due to trade liberalisation, globalisation and urbanisation trends. As a result, linking smallholder farmers to modern markets has been a concern among scholars, development agencies and policymakers. Although the transformation in agri-food industry has created many opportunities for smallholder farmers to elevate their income and welfare, they are confronted with many challenges such as poor access to technology, information, inputs, credits, and value-adding services. In this context; co-operatives are recognised to play an important role in improving smallholder farmers' market access. There is an ample amount of literature that discusses the advantages co-operatives are providing to their members/smallholder farmers. Most recent studies on co-operatives have compared members to non-members in terms of benefits and performance. Nevertheless, member benefits and performance of vertically integrated co-operatives gain less attention despite their importance. Vertically integrated co-operatives perform a range of activities related to supply of inputs, services and market information. Yet, there is scant information on how co-operatives' vertical integration benefits their members/smallholder farmers. This study aims to analyse and compare member benefits and performance of co-operatives vertically integrated into two levels: partially and fully integrated co-operatives. In particular, this study addresses whether there are better performance and members' benefits in fully integrated co-operatives than partially integrated co-operatives. This study was conducted in one of the main rice-producing provinces in Sri Lanka using a mixed-methods approach. Co-operatives involved in rice business activities in the province were studied and divided based on their level of vertical integration: partially or fully integrated. Partially integrated co-operatives centrally control some of the successive activities of a value chain (supply of inputs, provision of services and information, production, and assembling and marketing of primary products). Fully integrated co-operatives centrally control all the successive activities of a value chain (supply of inputs, provision of services and information, production, assembling and marketing of primary products, processing, wholesaling, and retailing). Cross-case comparisons of interview data complemented with financial data revealed that co-operatives' financial performance was not significantly different between partially and fully integrated co-operatives and was comparably unsatisfactory at both levels. Further, the financial performance of co-operatives was affected by their governance, managerial, technical and financial attributes. Survey data of 307 rice farmers were used to analyse and compare member-perceived benefits and performance between partially and fully integrated co-operatives. Exploratory factor analysis of data revealed five key areas of benefits: business and financial, livelihood, technology and information, low-cost inputs, and democratic control and education. It was found that business and financial, and technology and information benefits, were better among members in fully integrated co-operatives. Besides, propensity score matching analysis revealed better profits per kilogram of paddy rice and higher economic profit among members in fully integrated co-operatives. However, the regression analysis results showed varying financial performance among the members of co-operatives depending on their demographic and household, farm, and contextual factors. Findings in this study provided some important theoretical and practical implications. The benefits studied in this research provide directives for managers in formulating rice-related business strategies that are well-aligned with members' interests. Contradictions between members' perceived benefits and their actual financial performance in fully integrated co-operatives suggest a lack of awareness among members about the benefits of value-added activities and emphasise a need for improving member communication and engagement. Policymakers should be encouraged to promote vertically integrated co-operatives and provide training to their managers (including directors) on formulating and executing competitive strategies, good governance, and revisions concurrent to changing market forces.Item Examining commitment and heterogeneity within the membership base of agricultural co-operatives : an empirical study of a large New Zealand dairy co-operative : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Agribusiness at Massey University, New Zealand(Massey University, 2020) Apparao, DhananjayA strong relationship between member and co-operative is vital for agricultural co-operatives. Yet most of the research on agricultural co-operatives is centered on non-relational aspects such as efficiency. Although these conventional economic centric approaches are useful in understanding co-operatives and evaluating its performance, they are not comprehensive enough. Studies on the member - co-operative relationship which require an examination of co-operatives from a socio-psychological perspective are lacking. This research gap is addressed in this thesis via first identifying three important socio-psychological phenomena in agricultural co-operatives – 1. Commitment, 2. Heterogeneity and 3. Social Capital, and presenting a conceptual framework that links the three. Thereafter, the commitment and heterogeneity sub-components of the framework were further unravelled and empirically examined by randomly surveying 2,000 members of Fonterra Co-operative Group, of which 568 responded. The organisational commitment dimension of commitment is decoupled into three components – affective (emotive), normative (ideological) and continuance (utilitarian), and the commitment to collective action dimension into two components – patronage and governance. Fonterra had moderately high levels of affective, moderate levels of normative and slightly low levels of continuance commitment. The level of commitment to collective action was moderately high as the levels of commitment to both patronage and governance were moderately high. Importantly, there was a positive association between commitment to collective action and affective and normative commitment but not continuance commitment. This suggests that it is the emotive followed by ideological aspects of membership that influence a member’s commitment to collective action, and not the utilitarian or financial benefit aspects. Heterogeneity was measured and analysed using 35 heterogeneity sources that were categorized under three dimensions – farmer-member, farm-business and member-interest. Fonterra had high levels of heterogeneity with most of the sources in all three dimensions showing high heterogeneity. Of the three dimensions, member-interest, followed by farm-business showed the greatest heterogeneity and sources within them were most likely to result in differences in affective commitment, normative commitment, continuance commitment, commitment to collective action as well as commitment to governance and patronage. In contrast, most of the sources within the farmer-member dimension were not associated with either organisational commitment or commitment to collective action.Item Collective action : improving smallholder rice farmers' value chain in Yogyakarta, Indonesia : a thesis presented in partial fulfilment of the requirements for the degree of Master of AgriCommerce, at Massey University, Manawatu, New Zealand(Massey University, 2017) Ahmad, Shaf RijalCollective action has been widely accepted as one of the strategies to improve smallholder farmers’ capability to gain benefit from the agrifood value chain. This is also part of the working policy of the Government of Indonesia. Nevertheless, there is little empirical evidence for staple food farmers, particularly rice, in organising collective action and many such attempts have not met the policy’s implementation objectives. Considering the importance of rice agribusiness in Indonesia, therefore, there is a need to investigate experiences of smallholder rice farmers who work collectively and are able to improve their value chain and gaining benefit from it. The objectives of this study were to identify and describe what benefit captured through collective action and how, and; to identify and describe how these farmers act collectively within a group and why. The research question was answered and objectives addressed by using a qualitative single case study. A farmer group named Gapoktan Sidomulyo was selected, as it was identified by the central and local government as a well-developed collective farmers’ group. Data was collected through semi-structured interviews with farmers and other actors relevant to the group development. This study found that collective action helped smallholder rice farmers to build a competitive advantage. This action enabled them to improve production capacity and product quality, as well as human capability and bargaining power. This also helped them to reduce the number of intermediaries. Therefore, they can capture the potential value offered by the rice value chain. This study also highlighted essential factors for smallholder rice farmers’ collective action: Firstly, this action required incentives and support as well as a motivated group of farmers. Even when collective action was supported by government, it was essential to motivate farmers to act collectively and see the benefits for doing so. Secondly, trust and a shared vision between members of the farmer group was important element for collective action. These formed the basis for building horizontal relationships between farmers. This affected the reciprocity between them and their commitment. Thirdly, in a group that was heterogeneous, in terms of religion and reliance on farming as an income source, group cohesion could be achieved through effective group management, which means management that promoting transparency and active communication between farmers and the leadership team, and giving an opportunity for each actor within the group to play their role. These reduced the potential of conflict and maintain the farmers’ awareness on the group so that they keep engaged within the group. Fourthly, leadership with strong motivation, good interpersonal skills, social awareness, as well as administration and marketing skills were essential for the group’s development. Unlike to what has been identified in many studies, the leadership could also be provided by a team of people, instead of relying on an individual. Fifthly, maintaining the active members and the leadership team’s participation was essential as they were the key actors within the group. For the active farmers, this was achieved through: facilitating members to raise their voice and be involved in decision making, involving them to enforce rules, and conducting activity that attract them to attend regular meetings. Meanwhile, for the leadership team members, this could be achieved through conducting an appropriate leadership team selection process and acknowledging their effort in fostering the group. Lastly, despite there was a culture to work as a group, it was important for having trusted external agents to facilitate farmers and motivate them to act collectively, particularly when this required money in initiating the action. The support from external agents, such as technology and finance, was also important to build farmers capability in improving the value chain. In addition, this case highlighted that only some farmers were able to gain benefit through this action and they were who can produce consistently volume beyond their household requirements. Keywords: Smallholder farmers, collective action, rice value chain, agriculture, rice, Yogyakarta, Indonesia.Item Farmer cooperatives in Mexico : case studies in Jalisco : a thesis presented in partial fulfilment of the requirements for the degree of Master in AgriCommerce at Massey University, Palmerston North, New Zealand(Massey University, 2016) Romero Paz, Rex MauricioFarmer cooperatives are businesses owned and controlled by (and for) their members in order to create welfare and satisfaction beyond simple profitability. In developing countries, farmer cooperatives have been formed in rural areas in an effort to improve social integration, social equity, market and information transfer. Additionally, cooperatives have reduced the negative economic impact of market power and uncertainty through lower transaction costs, higher incomes and collective bargaining power. However in Mexico, cooperatives have faced an increasingly competitive and dynamic environment and have not adhered to the principles and values, such as solidarity, self-help and mutual aid, established by cooperative legislation. There is a lack of education, training and culture in relation to cooperatives. In addition, there is limited government support for financing, no stimulation for their creation and development and no public technical assistance. Despite this situation, in the state of Jalisco, there are successful consumer farmer cooperatives, whose main objective is to supply feed input (concentrates) to their members at the lowest possible cost. They have been able to achieve this by leveraging the collective bargaining power of members via the cooperative union. In order to identify factors for success in relation to the farmer cooperatives in Jalisco, a mixed methodology study was undertaken, using three case studies and a survey. Three farmer cooperatives in Los Altos, Jalisco were selected for the research: Pedro Ezqueda, Nutrimentos and Prolea. The results from the study showed that the following factors influence the success of farmer cooperatives in Jalisco: leadership; member knowledge and continuity; effective communication; member satisfaction; training; and government support. Additionally, challenges faced by these cooperatives include: poor understanding of cooperative principles among members; low enthusiasm for attending training; individualistic members with limited trust between them; lack of member commitment and participation in their cooperative; lack of young people joining the agriculture industry (including cooperatives); and no clear public policies regulating the agricultural sector. Despite these issues, farmer cooperatives have been successful within the challenging and dynamic environment in Mexico. Keyword: Jalisco, Mexico, farmer cooperatives, factors for successItem Case studies in rural co-operatives: three studies of the organisation and management or rural co-operatives providing post-harvest facilities in the kiwifruit industry: a research report submitted in partial fulfilment of the requirements for the degree of Master of Agricultural Business and Administration at Massey University(Massey University, 1983) Beattie, Michael IanThe co-operative ownership structure is one that is commonly encountered in New Zealand's agricultural industry. This type of organisation would appear to have a number of natural advantages that should make it very competitive in modern agri-business. However it is apparent at least some co-operatives have not lived up to their members' expectations. This research project has been undertaken to identify some of the problems of co-operative enterprise and to provide some possible strategies to improve their operation. This report examines the management and organisational practices of three co-operative enterprises providing post-harvest facilities in the Kiwifruit industry. The research follows a longitudinal case study approach, with each co-operative described in terms of the six dimensions of history, facilities, shareholding, direction, operation and finance. The material generated by the study is discussed within a framework of central issues, established from evidence of other co-operative activity, both in New Zealand and overseas. The report concludes with a description of some 14 common problems, and a discussion concerning the effectiveness of management and organisational measures that have been implemented as possible solutions. It then goes on to outline 10 general strategies that could be of significance in the improved operation of rural co-operatives.Item Sustainable development : a model Indonesian SRI co-operative : this research paper is presented in partial fulfilment of the requirements for the degree of Master of International Development, Massey University, New Zealand(The Author, 2016) Sharp, GawainThis research report explores how ‘sustainable livelihoods’ have been achieved at a model cooperative using the ‘System of Rice Intensification’ named SIMPATIK. To conduct the research a novel template was developed. The framework was required following a review of sustainable livelihood literature which found deficiencies with the ‘sustainable livelihoods framework’, particularly its treatment of equity, social capital, culture and agro-ecology which disqualified the framework as an appropriate approach for the research. Amekawa’s (2011) ‘Integrated Sustainable Livelihoods Framework’ which synthesises agro-ecology and the sustainable livelihoods framework is then discussed. Further work is then presented on social capital which this paper argues has a critical role in facilitating access to livelihood capitals. A discussion of the significance of culture then follows to underline its importance as a form of livelihood capital. The research then introduces an operational model that is appropriate to the local cultural, institutional and geographical context to demonstrate how livelihood capitals are linked to livelihood outcomes, a model I have labelled the ‘Apt-Integrated Sustainable Livelihoods Framework’. This framework is then informed through field research at the SIMPATIK co-operative. Impact pathways through ‘synergetic forms of social capital’ and the System of Rice Intensification (SRI) are shown indeed to lead to sustainable livelihood outcomes for research participants. The ‘sequencing’ of livelihood capitals is seen to be critical and the research culminates in the development of a ‘SRI Co-operative Template for Sustainable Livelihoods’; a transferable model that shows how SRI can be promoted as a sustainable livelihood strategy.