No abstract

Benefits of cooperative organization in agriculture come from price advantages in procurement and marketing, cost reductions and efficiency gains from sharing of productive assets and processes, and improved access to and increased efficiency in using credit, logistics, and information. Efficacy of strategic activities designed to capture these advantages is investigated empirically in a case study of the Tonghui Agricultural Cooperative in Inner Mongolia, an autonomous region of China. Information from interviews, on-site visits, evaluation of cooperative, member and partner information, and participation in the advising process are used to evaluate the impact of efforts to re-engineer the supply chain for independent farmers through cooperative organization. Specific examples of marketing channel development and operation for Wallace melons and mutton represent implementation of strategic plans. The case also reviews the cooperative’s credit system, designed increase access to and reduced cost of funds for members, use of alternative market venues, and horizontal expansion through tourism.

Delivering high-quality food into markets is a vital expectation of modern customers. The significant increase in consumers’ awareness of food freshness, nutrition, and safety makes the temperature-controlled supply chain (TCSC) the focus of food logistics safety. However, a large number of Chinese companies are still reluctant to invest in the food supply chain, resulting in a high rate of supply chain logistics loss. This research aims to establish an economic model to explain why these companies do not invest and under what conditions they will do. The results show that high economic investment is the main reason that hinders companies’ willingness to build TCSC. Large companies with bigger production are more willing to invest in TCSC than small companies. Besides, larger companies running with high-quality products could get more profit while small companies operating with normal products are less competitive.