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Strategies developed by leading EU agrifood cooperatives in their growth models

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Abstract

The objective of this article is to identify the factors that have brought about the greatest degree of competitiveness in some of the principal agrifood cooperative groups in the European Union (EU), using pertinent case studies from a range of sectors including the dairy, meat and fruit and vegetable sectors from three EU member states: Holland, Ireland and Denmark. With this purpose in mind, seven cases were identified for inclusion: Kerry Group, the Irish Dairy Board, Arla Foods, The Greenery BV, Danish Crown, Agrifirm and DLG. The article identifies the main barriers and problems faced by this type of cooperative and shows the strategies developed by leading cooperatives in their sector within the current comparative context and familiarizes readers with the different growth models these cooperatives use to achieve and maintain their market standing.

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Authors and Affiliations

  1. Business Management Research Centre (CEGEA), Universitat Politècnica de València, Valencia, Spain

    Juan F. Juliá-Igual, Elena Meliá-Martí & Gabriel García-Martinez

Authors
  1. Juan F. Juliá-Igual
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  2. Elena Meliá-Martí
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  3. Gabriel García-Martinez
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Corresponding author

Correspondence to Elena Meliá-Martí.

Appendix

Appendix

Guide/questionnaire used for in-depth interviews with cooperative organizations/firms.

  1. 1.

    LEGISLATION. Comments/evolution of cooperative legislation in recent years. Does your current framework represent a hindrance to some of your activities?

  2. 2.

    FINANCING. Do you consider current access to financing for agrifood cooperatives to be sufficient? Indicate the main sources of financing for your cooperative. Does your cooperative have access to capital markets to look for financing?

  3. 3.

    STRATEGY (I). Is the size of your organization a factor in the competitiveness of the cooperative?

  4. 4.

    STRATEGY (II). Do you consider diversification strategies to be important for your cooperative? Are they…

    1. a.

      Horizontal or vertical? To what extent?

    2. b.

      Within the agrifood sector or in others? To what extent?

  5. 5.

    INTEGRATION (I). What are the main integration models used by your cooperative in the past? (Mergers/Joint ventures/Alliances/Through the use of the status of European Cooperative/Others). Have they been developed with national cooperatives or internationally?

  6. 6.

    INTEGRATION (II). In the integration models currently used by your cooperative, what are the main changes you would highlight in comparison with those you have used in the past? Describe the advantages and drawbacks of the current models.

  7. 7.

    INTEGRATION (III). What are the main problems faced by your cooperative in merger processes? Did you have problems with or meet opposition from members, employees or managers? Comments on the law on defense of competition. Is it an obstacle to your activities?

  8. 8.

    INSTITUTIONAL SUPPORT. Does your cooperative have institutional support? What type of support does it receive (subsidies, shares on the capital of as company within the group, tax incentives, etc.)?

  9. 9.

    MARKETS (I). What are the relations like between your cooperative and retailers (describe)? (Capital investment, Supply contracts, Others). Have these relations been stable over time? Do you have exclusive supply agreements? Do you consider this to be a positive thing?

  10. 10.

    MARKETS (II). Can your products be distinguished in the market as coming from a cooperative? If so, explain how and if you have any programs designed to achieve this.

  11. 11.

    R+D+i. What percentage over turnover is represented by investment in R+D+i? Si it carried out via contracts with a university, your own R+D teams, research institutes, others? To what extent?

CONCLUSIONS. Indicate the current strengths and weaknesses of agrifood cooperatives.

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Juliá-Igual, J.F., Meliá-Martí, E. & García-Martinez, G. Strategies developed by leading EU agrifood cooperatives in their growth models. Serv Bus 6, 27–46 (2012). https://doi.org/10.1007/s11628-011-0129-3

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