Proceedings

PR – Models Of Growth In Agri And Food Cooperatives (p406-417)

Growth is a major strategic goal for many agri. and food companies all over the world, and growth is necessary to maintain and enhance international competitiveness. For years, growth through mergers among national cooperatives has been rather uncomplicated. However, growth through international mergers and acquisitions is much more demanding and difficult for cooperatives. Mergers with – or acquisitions of – foreign capital owned companies are often rather capital intensive, and cooperatives do not have the same options and instruments to attract equity capital from the stock markets as shareholding companies.

This makes it necessary to define and develop new models for growth of cooperatives. The models can range from sophistication of the present cooperatives to a total showdown with the idea of cooperatives in agri. and food business.

In this article, eight different models are presented and discussed. Furthermore, some examples of how the models are implemented and used by farmers and cooperate members in order to be able to generate more growth in agri. and food industries, are described.

Finally, a number of crucial factors and preconditions, which should be taken into account when considering new corporate structures, are discussed.,

Keywords: Growth cooperative merger acquisition driver

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Author(s): Hansen, H.O.

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Organizations(s): University of Copenhagen