Collaboration in a cooperative context : a case study of producer organizations and local associations

Sammanfattning: Collaboration in different forms has been a commonly used activity by farmers for a long time. These collaborations can take many different shapes and forms, from being simpler farmer clubs to multi-national cooperatives. However, most of them fill the function of being an intermediary between producer and market. In Sweden, Lantmännen is the largest agricultural cooperative with business both in Sweden and around the Baltic region. The association has up to 25 000 independent members. However, studies have shown that the growth of cooperatives may affect the trust and commitment of fellow members, as they feel further separated from the core decisions. In the latest years characterized by low profitability for agricultural firms, another form of collaboration has arisen. Producer organizations have been forming around Sweden, which often include a number of farmers in a local region who through collective negotiations try to lower prices on production factors and raise prices when selling grain. This type of collaboration between farmers that are members in Lantmännen could have a future impact on the Swedish grain market. This study aims to investigate and expand the understanding surrounding farmer’s collaboration through producer organizations and local associations. This is analyzed through a framework of drivers and trust within a collaboration as well as trust and loyalty towards the cooperative the farmers are a part of. The conclusion of this study shows that these collaborations have a financial and social effect on the respondents’ farms, that trust is high and that the trust towards the cooperative is varied however, the loyalty and frequency of trade still is high.