Farmers' reactions to the internationalisation of cooperatives

Authors

• Petri Ollila University of Helsinki
• Jerker Nilsson Swedish University of Agricultural Sciences
• Sebastian Hess Swedish University of Agricultural Sciences

DOI: https://doi.org/10.23986/afsci.45222

Keywords:

Agricultural Cooperatives, internationalization, social capital, Multi-Nominal Logit model

Abstract

Abstract: This study examined the extent to which farmer cooperatives enjoy social capital within their memberships as they become internationalised. The empirical basis was a survey of farmers in Finland. Findings from limited dependent variable regression models suggest that one group of farmers is loyal to the cooperative and opposes its foreign investments. A second and a third group have lower levels of social capital and switch membership status between multiple cooperatives or opt out of cooperatives. These farmers welcome international investment. This finding was more significant for individual farm types than the social capital-linked opposition to internationalisation. A general conclusion is that the internationalization of cooperatives seems affect the members’ trust in the cooperative differently. The increasing heterogeneity within the memberships may give rise to governance problems.