Files
Abstract
Commercialization through cooperatives has the potential to reduce
transaction costs and improve bargaining power of farmers vis-à-vis the
market. The objective of this study is to evaluate the probability for
Ethiopian agri-cooperative to engage in collective marketing activities over
time, given market and governance characteristics. Using a sample of 200
agricultural cooperatives from the Ethiopian Highlands, the analysis reveals
that collective marketing faces cyclical challenges related to increased
competition. Empirical results also suggest that among Ethiopian
cooperatives, those located in the Northern regions of Tigray and Amhara,
and/or established upon the voluntary initiative of farmers, are more likely to
engage in sustainable collective marketing activities over time. The study
concludes with implications for policy and further research.