Agricultural and Food Cooperatives in

Rural Development:

Implications of Business Dynamics

for Public Policy

Workshop Themes and Workshop Themes and MotivationMotivation

• Cooperatives’ successes and failuresCooperatives’ successes and failures

• Business dynamics and market Business dynamics and market changeschanges

• Public policy optionsPublic policy options

Relationship Between Relationship Between Cooperatives and Cooperatives and

Economics Economics

• Market concentration and Market concentration and market powermarket power

• Governance and financing restrictionsGovernance and financing restrictions

• Historical links between agriculture Historical links between agriculture and the rural economyand the rural economy

• Market dynamicsMarket dynamics

Public Policy QuestionsPublic Policy Questions

• Should cooperatives be treated Should cooperatives be treated differently from other businesses? differently from other businesses?

• Do current public policies towards Do current public policies towards cooperatives meet their objectives?cooperatives meet their objectives?

• What alternative policies would better What alternative policies would better serve the public interest in the serve the public interest in the dynamic business environment of the dynamic business environment of the 21st century?21st century?

AgendaAgenda

• First two sessionsFirst two sessions

– When do cooperatives have a competitive When do cooperatives have a competitive advantage (is market failure required?)advantage (is market failure required?)

– Examples of successful coops and challenges Examples of successful coops and challenges overcomeovercome

• Second two sessionsSecond two sessions

– ChallengesChallenges

– Examples of failed or struggling coopsExamples of failed or struggling coops

• Closing policy discussionClosing policy discussion

AgendaAgenda

• Two luncheon lecturesTwo luncheon lectures

– Small business dynamicsSmall business dynamics

– The evolving structure of rural AmericaThe evolving structure of rural America