Nilsson, Jerker
- Department of Economics, Swedish University of Agricultural Sciences
Abstract
The ownership of food processing firms affects farmers supplying those firms with agricultural products. This study examined the effects of supplying either a farmer-controlled business (FCB) or competing investor-owned firms (IOFs). An FCB is owned and controlled partly by farmers and partly by external investors. Analysis of data obtained from a survey of pig producers in Sweden indicated that partial ownership by farmers resulted in them perceiving the FCB as having some co-operative traits. The FCB suppliers were less inclined to exit, used their voice more, and showed greater loyalty than the IOF suppliers. In the long term, however, the farmers' relatively positive view of FCBs might change because this organizational form contains inherent conflicts between the interests of the farmers and the external investors. As competition intensity increases and primary agriculture becomes increasingly concentrated, the co-operative features of an FCB are due to become vaguer over time. These problems may threaten the long-term existence of FCBs.
Published in
Journal on Chain and Network Science
2014, volume: 14, number: 3, pages: 201-211
SLU Authors
Liljenstolpe, Carolina
- AB Stelacon
Westerlund Lind, Lena
- Ministry of Rural Affairs
UKÄ Subject classification
Business Administration
Publication identifier
- DOI: https://doi.org/10.3920/JCNS2014.0244
Permanent link to this page (URI)
https://res.slu.se/id/publ/64293