Effect of Size on Performance of Spanish Agricultural Cooperatives

Abstract

As with other types of company, size in agricultural cooperatives has generally been signalled as a facilitator of competitive advantage, bringing both cost reduction associated with economies of scale and differentiation through innovation. However, size is also associated with certain disadvantages deriving from structural complexity and reduced flexibility. In this context, the objective of this paper is to verify the relationship empirically between the size of agricultural cooperatives and their performance. The study uses data on 108 fresh fruit and vegetable cooperatives in Spain. The positive results obtained concerning the relationship will be of use to those responsible for the administration of such enterprises in making decisions on growth strategies.

Spatial effects on the productive structure of Spanish agri-food cooperatives

“…Variables to evaluate a firms’ performance, such as return on assets or return on investment, are frequently used in agricultural studies. Nevertheless, these measures are difficult to interpret for cooperatives, where the main aim is to maximize the satisfaction of their members by offering a list of services which tends to create a state of well-being for their associates (Arcas et al, 2011; Guzmán and Arcas, 2008). To overcome this limitation, a data envelopment analysis (DEA) was applied and Malmquist total factor productivity (TFP) index computed.…”

Membership in agricultural producer organizations and farm technical efficiency in Slovakia

“…Studies conducted in the developed countries assessed, for example, the effects of APOs on economies of scale. A correlation between the size of APOs and their performance was studied by Guzmán et al (2009), Arcas et al (2011). As a proxy for the size of cooperatives they used sales, total assets, material fixed assets, handling surface and the number of permanent and temporary employees.…”

“…They found that the US milk processing cooperatives were less efficient than their proprietary counterparts. Guzmán and Arcas (2008), Guzmán et al (2009) and Arcas et al (2011) examined the performance of fruit and vegetable producer organizations in Spain and Italy using DEA and complemented it with traditional economic and financial ratio analysis. They found that, on average, the Spanish APOs exhibited relatively high efficiency and that there could be a positive effect of the APO size on their performance, which indicates that size is associated with cost reduction through economies of scale and differentiation through innovation.…”

Los procesos de integración de las cooperativas agroalimentarias. De la norma a la realidad. Especial referencia a la Ley 13/2013 de Fomento de la Integración Cooperativa

“…También hay numerosos trabajos realizados sobre la importancia del tamaño empresarial en las cooperativas agroalimentarias (Juliá y Server, 1999;Meliá, 2003;Meliá y Marín, 2006;Vargas, 1993;Montero y Montero, 2005;Arcas, 2008;Baamonde, 2009;Juliá et al, 2010;Arcas et al, 2011a;2011b;Juliá et al, 2012;Bekkum, 2013, Bijman et al, 2013), los cuales ponen de manifiesto la necesidad de integración de estas entidades para mejorar la dimensión, ya que son sólo las _____________ entidades de mayor tamaño las que están mejor posicionadas en un entorno de mercado complejo: tienen más capacidad innovadora, de internacionalización, generan economías de escala, y son capaces de proporcionar en consecuencia mayores rentabilidades a los socios. Además, son las cooperativas mejor dimensionadas, las que previsiblemente van a continuar liderando procesos de crecimiento empresarial, creciendo a tasas superiores al resto.…”