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Abstract

The objective of this study is to determine if there are important size and industry effects on financial performance of cooperatives. The analysis of a sample of 43 cooperatives over the period 1970-1987 indicates that large cooperatives are more efficient in utilization of their assets, while small cooperatives have higher profitability. The dairy cooperatives appear to be the strongest performers among the four industries studied. The food marketing cooperatives, many of which engage in value added processing, are characterized by the lowest performance measures. The most striking trend effect estimated from this sample is the decline in profitability for all industry and size categories.

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