Results (
Indonesian) 1:
[Copy]Copied!
4. The case companyThe case company, FoodCorp (name disguised), is a company in the agri-food industry with four individual business groups. At the time of the case study, it had an annual turnover of €5 billion and 15,000 employees. Its primary customers are retailers, and FoodCorp has production and sales worldwide. FoodCorp is organized as a cooperative and is primarily owned by Scandinavian farmers (called cooperative members). The cooperative members are not only owners of FoodCorp – they are also its suppliers. In fact, the owners are obliged to supply the bulk of their production to FoodCorp. The agri-food industry is characterized by a wave of consolidations, and cooperatives are actively taking part in this process (Van der Krogt et al., 2007). FoodCorp is also active in this consolidation process and the company itself is a result of several mergers.In a cooperative, any net income for the year is either distributed to the farmers in proportion to the amount (or value) of the goods they supplied to the cooperative or it is transferred to equity (Cobia, 1989)[2]. The distributions from the cooperative are of utmost importance to the farmers, as such distributions often constitute their main or only source of income. Farmers subjectively compare their cooperatives with alternative trading partners and their own farming operations with those of other farms (Österberg and Nilsson, 2009). If they are dissatisfied, cooperative members can switch to a better-performing competitor to gain access to higher income.
Being translated, please wait..
