Chinese

News

Current Position: homepage  News

Risk sharing, benefit distribution and cooperation longevity: sustainable development of dairy farmer cooperatives in China

Editor:金逸雯 Author: cgsoft Hits:2022-05-31

Abstract:

The sustainable development of cooperatives is essential to agricultural sustainability and is determined mainly by cooperation longevity. The risk-sharing and benefit distribution mechanisms are important governance arrangements that affect cooperation longevity in member-heterogeneous cooperatives. However, the relationship between cooperatives’ risk-sharing and benefit distribution arrangements and cooperation longevity is not well understood. To address this research gap, we provide a conceptual framework to illustrate the relationship between risk sharing, benefit distribution, contract form and cooperation longevity. By conducting 23 interviews with three dairy cooperatives in China using a multiple-case-study method, we find that cooperation longevity is influenced by the alignment of the combination of risk-sharing and benefit distribution for cooperatives and their members. Following the principles of risk-benefit equivalence and strategy-risk preference matching, we discuss four scenarios of match or mismatch of combinations of risk-sharing and benefit distribution. We suggest that the government needs to strengthen risk mitigation capabilities for cooperatives and members, and to help them to build an effective risk-sharing and benefit distribution arrangement to achieve sustainable development.

International Journal of Agricultural Sustainability 20223

For more detailed information: https://doi.org/10.1080/14735903.2022.2041229