The Evolution of Grain Trading Organizations in Australia: Applying the Cooperative Life Cycle

Cook’s (1995) life cycle theory of cooperatives predicts a rise and fall of cooperatives over time. He argues that cooperatives arise as a response, by producers or consumers, to some form of inefficiency in a market structure, for example an oligopoly. In such a market, the cooperative can thrive by replacing the ineffective firms until other firms or institutions or technology come along and deliver even better service. When this happens, the cooperative’s ownership and control features may hamper its ability to grow and compete. According to Cook, the cooperative will eventually need to change in order to accommodate investors, or it will be forced to exit the market. This article considers the case of Australia’s grain market within Cook’s framework to see if it has behaved as predicted and where it is heading in terms of responding to the needs of the agents in the market chain. In the 1980s Australia’s grain cooperatives and institutions faced challenges from deregulation and changing market structure that exposed extensive inefficiency in the traditional cooperative ownership arrangements. This article will review the origins, successes and eventual transformation of Australia’s major grain marketing institutions.Agribusiness,

Managing an Industry in Crisis: BSE in Canada

A BSE discovery in a downer cow in May 2003 in Alberta caused the closure of all international markets to live cattle exports. The Canadian cattle industry has lost $5.5 billion as a result. This paper describes the BSE threat, the border closures, and policy responses & their efficacy.International Relations/Trade,

Meat Processing in North America: Successes, Failures and Opportunities

This paper analyzes historical successes and failures in meat processing using a case study methodology, especially as it relates to possible changes in Canadian market access. Cases include: IPB and economies of size; Canada Packers labor failures; and Tyson and Certified Angus branding strategies.Agribusiness,

The consequences of biotechnology : a broad view of the changes in the Canadian canola sector, 1969 to 2012

This article is a broad assessment of the effect of biotechnology on canola in Canada. We examine the effects of biotechnology on the canola industry in terms of area, varieties, and yields, as well as the returns to research and firm-level benefits. Evidence of the privatization of the canola industry is seen in the dominance of the private sector in the registration of new canola varieties. The latest development in the sector is the dominance of a few private firms, which raises new concerns. However, the literature and our calculations indicate considerable benefits from canola research and recent technological advances. The area seeded to canola varieties, the number of varieties available, and canola crop yields have been on an upward trend for 50 years. Current producer benefits were estimated to be more than $1 billion and breeding firm returns were more than$700 million

An economic account of innovation policy in Canada : a comparison of canola, wheat, and pulses

There is significant evidence that investments in agricultural research generate gains to farmers and the economy as a whole. The objective of this paper is to provide an assessment of the biotech industry in Canada including an update of producers' benefits from herbicide tolerant canola, comparisons of gains with other crops, and the need for government involvement. The study also assesses the evolution of research policies in Canada over time, exploring the role of government in today's crop research. The study develops a framework to analyze options for agricultural research, including property rights, subsidies to private researchers, and public research in the context of three representative case studies: canola (a large crop with significant privatization in plant breeding), wheat (a large crop without significant privatization), and pulses (a small crop with adequate crop development funding through check-offs). Current challenges and opportunities facing crop innovation are also discussed.Stavroula Malla (University of Lethbridge, Canada), Derek G. Brewin (University of Manitoba, Canada

The Value of a New Biotechnology Considering R&D Investment and Regulatory Issues

The prevalence of the products of biotechnology in Canada's canola industry is vast. More than 95% of Canada's seeded area is in herbicide-tolerant (HT) varieties, which are products of biotechnology. Overall, the industry has experienced significant growth; for instance, the area seeded to canola varieties has increased from less than one million hectares (ha) in the 1960s to over 8 million today (Statistics Canada, n.d.). Later in the article we show that the number of commercial varieties available and the index of yields for those varieties have increased sharply since the 1980s (Brewin & Malla, 2012; Phillips, 2001). Agricultural biotechnology could facilitate further productivity growth in crops such as canola. However, the policies and regulations that are in place might need to further evolve to insure continuing growth in the sector. Furthermore, assessing the benefits to Canadian producers by adopting HT and hybrid varieties over time would improve our understanding of the sector and the gains that are possible under comparable regulations for similar sectors. A significant portion of these benefits were facilitated by changing the institutions in Canada to provide incentives to private investment

Innovation, Rurality and Human Capital in Food Processing

In the hope of supporting rural economies, some rural planners suggest fostering food processing firms in rural areas. Locating close to the source of necessary agricultural commodities might give the processors an advantage. However, emerging patterns of product innovations, which affect demand, and process innovations, which lower costs, are tied to firm-level capacities in research and development. Communities can become more efficient at supplying services, including research services, to a particular industry. This in turn lowers the costs of that industry, driving up demand for the services and so on. The agglomerations of service firms spin off supporting services, which accommodate yet more firms. Agglomerations of service firms are difficult to support in a rural community. Individual firms in rural areas have trouble meeting their own labour needs, let alone the needs of their service sector. The two forces of low transportation costs for commodity inputs versus lowered costs from agglomerations can leave the optimal location for a food processing firm unclear. Urban settings will deliver more agglomerations, but rural settings might allow for cheaper commodity inputs. One of the key factors in a firm’s success is the rate of innovation. This study looked at the rate of innovation in food processing firms across western Canada and tested whether this rate was affected by a firm’s location or by the human capital capacities of the firm or the region surrounding it

Managing an Industry in Crisis: BSE in Canada

A BSE discovery in a downer cow in May 2003 in Alberta caused the closure of all international markets to live cattle exports. The Canadian cattle industry has lost $5.5 billion as a result. This paper describes the BSE threat, the border closures, and policy responses & their efficacy