The Role of Cooperatives in Brazilian Agricultural Production

Much of the established literature on agricultural cooperatives describes their myriad contributions to farmers’ economic performance. In Brazil, one of the world’s leading agricultural exporters, there were more than 1500 agricultural cooperatives with 1 million members in 2020, and in 2017, 11% of...

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Main Authors: Mateus de Carvalho Reis Neves, Felipe de Figueiredo Silva, Carlos Otávio de Freitas, Marcelo José Braga
Format: Article
Language:English
Published: MDPI AG 2021-09-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/11/10/948
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author Mateus de Carvalho Reis Neves
Felipe de Figueiredo Silva
Carlos Otávio de Freitas
Marcelo José Braga
author_facet Mateus de Carvalho Reis Neves
Felipe de Figueiredo Silva
Carlos Otávio de Freitas
Marcelo José Braga
author_sort Mateus de Carvalho Reis Neves
collection DOAJ
description Much of the established literature on agricultural cooperatives describes their myriad contributions to farmers’ economic performance. In Brazil, one of the world’s leading agricultural exporters, there were more than 1500 agricultural cooperatives with 1 million members in 2020, and in 2017, 11% of all Brazilian farms were associated with one of these cooperatives. In this paper, we estimate the factors associated with the municipality share of cooperative membership (MSCM) and how municipality-level production value changes with MSCM. Our analysis is at the municipality level using aggregate data from the 2017 Agricultural Census. We find that in Brazil, higher education and smaller property sizes are associated with membership in agricultural cooperatives. To estimate how MSCM is associated with farm profits, we use a generalized propensity score and find that an increase in MSCM increases net municipal farm income, driven mostly by an increase in the value of agricultural production compared to a smaller increase in the cost of production.
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spelling doaj.art-691e43cafeb848b0b446c520dc1c44c82023-11-22T17:04:42ZengMDPI AGAgriculture2077-04722021-09-01111094810.3390/agriculture11100948The Role of Cooperatives in Brazilian Agricultural ProductionMateus de Carvalho Reis Neves0Felipe de Figueiredo Silva1Carlos Otávio de Freitas2Marcelo José Braga3Departamento de Economia Rural, Universidade Federal de Viçosa, Edson Potsch Magalhães Building, Purdue St., Campus Universitário, Viçosa 36570-900, BrazilDepartment of Agricultural Sciences, Clemson University, 235 McAdams Hall, Clemson, SC 29634, USADepartamento de Ciências Administrativas, Universidade Federal Rural do Rio de Janeiro, BR 465 Rd., Km 07, Seropédica 23890-000, BrazilDepartamento de Economia Rural, Universidade Federal de Viçosa, Edson Potsch Magalhães Building, Purdue St., Campus Universitário, Viçosa 36570-900, BrazilMuch of the established literature on agricultural cooperatives describes their myriad contributions to farmers’ economic performance. In Brazil, one of the world’s leading agricultural exporters, there were more than 1500 agricultural cooperatives with 1 million members in 2020, and in 2017, 11% of all Brazilian farms were associated with one of these cooperatives. In this paper, we estimate the factors associated with the municipality share of cooperative membership (MSCM) and how municipality-level production value changes with MSCM. Our analysis is at the municipality level using aggregate data from the 2017 Agricultural Census. We find that in Brazil, higher education and smaller property sizes are associated with membership in agricultural cooperatives. To estimate how MSCM is associated with farm profits, we use a generalized propensity score and find that an increase in MSCM increases net municipal farm income, driven mostly by an increase in the value of agricultural production compared to a smaller increase in the cost of production.https://www.mdpi.com/2077-0472/11/10/948agricultural marketsgeneralized propensity scorecooperative organizations
spellingShingle Mateus de Carvalho Reis Neves
Felipe de Figueiredo Silva
Carlos Otávio de Freitas
Marcelo José Braga
The Role of Cooperatives in Brazilian Agricultural Production
Agriculture
agricultural markets
generalized propensity score
cooperative organizations
title The Role of Cooperatives in Brazilian Agricultural Production
title_full The Role of Cooperatives in Brazilian Agricultural Production
title_fullStr The Role of Cooperatives in Brazilian Agricultural Production
title_full_unstemmed The Role of Cooperatives in Brazilian Agricultural Production
title_short The Role of Cooperatives in Brazilian Agricultural Production
title_sort role of cooperatives in brazilian agricultural production
topic agricultural markets
generalized propensity score
cooperative organizations
url https://www.mdpi.com/2077-0472/11/10/948
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