Royal Agricultural College

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Royal Agricultural College
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Collaboration

• Royal Bath
  West Show Society

• English Farming and Food
  Partnership

• Douglas Bomford
  Trust

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Journey
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Effective Cooperation within the UK Food Supply
Chain

• Francisco Gonzalez-Diaz
• BSc.(Ing.Agr.) MBA, PhD Student
• Supervisors
• Prof. J Alliston, Dean of School of
  Agriculture, RAC
• Prof. D Newton, Visiting Professor, School of
  Business, RACProf. B Dent, Recently retired
  Principal of the RAC
• Previously
  Professor of Resource Economics, Edinburgh

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Why English farmers do not cooperate?
Retailers power
Farmers
I am big enough
Competition Law
Loss of Independence
Other people in the industry
No need/subsidies
Lack of commitment
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European Food Retail Market Shares (2001-2002)
Source Thelwall, 2004
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The Importance of Cooperatives
Source EFFP, 2004
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Aims and Objectives
Overall Aim
To develop a new model of cooperation from which
UK farmers can achieve greater competitiveness
Objectives
-To assess the effectiveness of the traditional
models of cooperation utilised by UK farmers
-Identify examples of collaborative processes in
other countries and identify transferable best
practices
-To identify and test new collaborative
structures for their feasibility, acceptability
and suitability
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Methodology

• - Analysis of collaboration-case studies using
  interviews and company documents (UK-Europe)
• Cooperatives - Institutions of cooperation
• Farmers - Processors- Retailers
• Experts

• Round of interviews
• Inductive grounded theory approach and guided
  interview techniques
• Leading academics, government officials and
  managers
• To identify the parameters of best practice and
  develop a working hypothesis

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Results
Very important factors Culture of farm focus
Barriers
Ideal characteristics
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Results
Important factors Intrinsic limitations of the
traditional model
Barriers
Ideal characteristics
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Results
Relevant Factors Personal characteristics and
skills of the members
Barriers
Ideal characteristics
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New framework
New models have to focus on
Concept
Operation
1) Consumer / Supply chain
1) Professionals
Board of Directors
2) Flexible / Adaptable
Management
3) International
2) Tangible benefits
4) Farmer owned/controlled
3) Investment
5) Efficient
4) Training/Education
5) Commitment
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Draft models
Netassoc Model 1
Entrance into collaboration (1 stage)
Loose-tight and flexibility for the members
Trade subject to previous specifications
Netcoop Model 2
More Commitment (2 stage)
Power and reward related to use
Very tangible benefits
Netbuss Model 3
Corporate style company
Investment driven
Farmer controlled
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Research stages
STAGE 1
Proposals for new business forms
STAGE 2
Refining the frameworks using expert opinion
STAGE 3
Testing the commercial acceptability of the models
COMMENTS / SUGGESTIONS / IDEAS / EXAMPLES
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Finally

• THE END
• Thank you very much
• Muchas Gracias

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Key references

•   Bartlett C.A Ghosal (2000). Beyond the
  M-Form towards a Managerial Theory of the Firm
  in Segal-Horn, 5 (ed). The Strategy Reader,
  Black
•  Day. G (1999) Aligning organizational structure
  to the market. Business Strategy Review, Vol 10,
  issue 3 p 33-46
•  Volberda, H.W. (1998) Building the flexible
  firm. Oxford University press.
• Hennessy, J.E and Robins (1991) Managing
  towards the millennium. Fordham University Press-
  N.Y.
•  Easterby- Smith M., Thorpe A. et al (1991).
  Management research An introduction. Sage
  London.
•  Venkatesh A., Sherry J F, et all (1993). Post
  modernismand the marketing imagery. International
  Journal of research Marketing. Vol 10 , No 3,
  pp215-223

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Royal Agricultural College
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Scale
Agricultural output US 21,850 M
TESCO US 50,000 M
FCB Turnover US 7,000 M
FCB US 30 M