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The concept of cooperatives in the us food system, discussing their definition, importance, and performance compared to investor-owned firms. Theoretical and empirical perspectives are provided, along with challenges and responses. Quotes from h.e. Babcock and linda kravitz add context.
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What is a cooperative? How important are co-ops in the US food system? Do co-ops perform differently than investor- owned firms? Theoretical perspectives Empirical perspectives Challenges facing cooperatives and their responses
"I regard a farmer-owned, farmer-controlled cooperative as alegal, practical means by which a group of self-selected, selfish capitalists seek to improve their individual economic positions in a competitive society." -- H.E. Babcock, "Cooperatives as thePacesetters in Agriculture." Journal of Farm Economics 17, no. 1 (1935): 153-56.
"The process of cooperation is as important as the result of cooperation, and to strip farmers of the former will ultimatelystrip them of the latter." -- Linda Kravitz. Who's Minding the Co-op? A Report on Farmer Control of Farmer Cooperatives. Washington: Agribusiness Accountability Project, 1974.
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Residual claimancy and: Pro-competitive effects Management control Raising capital and the “horizon problem” Can cooperatives “unduly enhance” prices?