Factors influencing probability and frequency of participation in merger and partnership activity in agricultural cooperatives

Consolidation and concentration in agriculture continue to be important topics. This paper uses a binomial probit model to assess the motivations for opportunities and participation in mergers, acquisitions, joint ventures, and strategic alliances in agricultural cooperatives. A Poisson model is also used to investigate the frequency of participation in these activities. Results show that competition, patronage refunds, research and development, and market diversification all affect opportunities and participation. Firm size, placement in the market channel, and research and development activities appear to influence the frequency of participation. [EconLit Categories: Q13, G34.]