CIRIEC Nº 112 November 2024

Agrarian associativism and the crisis in the agri-food value chain

Editorial in homage to the victims and those affected by the floods of the DANA in Valencia in 2024

Authors: José Luis Monzón y Rafael Chaves

‘’Agrarian associationism and the crisis in the agri-food value chain‘’. Introduction

Authors: Elena Meliá Martí (Ed.)

Extra virgin olive oil value chain

Authors: Manuel Parras-Rosa, Manuela Vega-Zamora, Antonio Ruz-Carmona

Keywords: CAP, value chain, extra virgin olive oil, public policies, business strategies, olive sector, olive mills, cooperativism

Econlit Keywords: Q13, Q18, P13, L1.

DOI: https://doi.org/10.7203/CIRIEC-E.112.29540

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Improving the position of the primary sector in agri-food value chains is a high priority on the EU public agenda, with the promotion of cooperation and the cooperative movement serving as key instruments for achieving this goal. However, to implement public policies that strengthen the position of farmers within these value chains, rigorous studies must be conducted. This research has a twofold purpose: firstly, to evaluate and, if necessary, design public policies aimed at determining the extent to which these policies are successfully improving the position of farmers in the value chain; and secondly, to address a less-explored issue in the literature, which is to enable agents operating within the same link of the chain to adopt measures that enhance their efficiency, based on the signals emitted by the chain itself regarding costs, prices, and margins.

In this context, this paper focuses on analyzing the extra virgin olive oil value chain over two seasons, 2018/2019 and 2019/2020, to demonstrate the value chain’s usefulness in achieving the aforementioned objectives. The results indicate that the weakest link in the chain is the primary sector, specifically the olive sector. However, the primary processing sector, which includes oil mills where cooperatives play a leading role, also experienced losses in both seasons.

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PARRAS-ROSA, M., VEGA-ZAMORA, M. & RUZ-CARMONA, A. (2024): “Extra virgin olive oil value chain”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 15-44.

Cooperation agreements in the food chain: win-win relationships for a more sustainable chain. The case of Mercadona

Authors: Elena Meliá-Martí, Natalia Lajara-Camilleri, Alicia Mateos-Ronco

Keywords: Cooperation agreement, Supplier management, key retail account, retailer-supplier partnership, performance, exclusivity, Mercadona.

Econlit Keywords: M21, B55.

DOI: https://doi.org/10.7203/CIRIEC-E.112.28808

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The aim of this paper is to study the impact of cooperation between operators in the food supply chain. And particularly between two of the operators (retailers and suppliers) whose relationship, given the asymmetry between them, has often been questioned and labelled as unequal, favouring the stronger party. Specifically, we will analyze the most demanding type of agreement for suppliers, as it involves exclusive supply. This paper aims to study whether the collaborative relationships between these two food chain operators benefit both parties equally and, therefore, contribute to the economic sustainability of the chain. To this end, we analyze whether it is worthwhile for a supplier in the retail grocery sector to develop a long-term exclusivity collaboration agreement with a retailer to whom they sell their entire production or most of it (exclusive key retailer account). For this purpose, we have analyzed Mercadona’s suppliers, the largest food distribution company in Spain, at a time when their relationship was based on exclusivity. Through inferential statistics and a logistic panel regression, a comparison of Mercadona’s exclusive suppliers with two control groups (subsector and non-Mercadona intersuppliers obtained by matching) has been carried out.

The results suggest that this type of exclusive collaboration agreement, in the case of Mercadona with its exclusive suppliers, is beneficial and profitable for the weaker party, the supplier. Our findings provide evidence that collaboration and cooperation between suppliers and retailers can provide a win-win relationship, the key to which is maintaining effective cooperation between both parties in order to accomplish common goals.

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MELIÁ-MARTÍ, E., LAJARA-CAMILLERI, N. & MATEOS-RONCO, A. (2024): “Cooperation agreements in the food chain: win-win relationships for a more sustainable chain. The case of Mercadona”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 45-81. DOI: https://doi.org/10.7203/CIRIEC-E.112.28808

Determinants of Agricultural Producers’ Integration into Agri-food Cooperatives: The Case of the Region of Murcia

Authors: Jorge Luis Sánchez Navarro, Erasmo Isidro López Becerra, Miguel Hernández Espallardo, Narciso Arcas Lario

Keywords: Agri-food cooperatives, integration, determinants, development, competitiveness, dependence, marketing, risk aversion.

Econlit Keywords: R1, Q12, Q13

DOI: https://doi.org/10.7203/CIRIEC-E.112.29444

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Agri-food cooperatives are fundamental for social cohesion in rural areas, where they are mostly concentrated. These organizations not only enhance the competitiveness of their members’ farms but also generate wealth and employment, helping to retain population and combat rural depopulation. This study analyzes the factors influencing Murcian agricultural producers’ decisions to join cooperatives. To do this, a Probit regression model is employed, based on survey data from 225 agricultural producers in the Region of Murcia, both cooperative members and non-members. The results show that household economic dependence on agriculture, preference for long-term commercial relationships, and specialization in olive oil or dairy products increase the likelihood of cooperative membership. Conversely, the availability of alternative marketing options and higher risk aversion decreases this likelihood. This analysis provides valuable information for cooperative managers, sector organizations, and public administrations by offering a profile of agricultural producers, which aids in designing strategies to attract new members and consolidate existing ones.

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SÁNCHEZ-NAVARRO, J.L., LÓPEZ-BECERRA, E.I., HERNÁNDEZ, M. & ARCAS, N. (2024): “Determinants of Agricultural Producers’ Integration into Agri-food Cooperatives: The Case of the Region of Murcia”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 83-102. DOI: https://doi.org/10.7203/CIRIEC-E.112.29444

Agrarian Transformation Societies in Spain: An Efficient Model of Agricultural Associationism

Authors: Cándido Román-Cervantes, Javier Suárez-Domínguez

Keywords: Agricultural Colonization Groups, legislation, agricultural associationism, SAT, territorial expansion, Spain.

Econlit Keywords: N33, P13, Q10, Q13.

DOI: https://doi.org/10.7203/CIRIEC-E.112.29532

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This article analyzes the Agricultural Transformation Societies (SAT) in Spain, a model of agricultural associationism that has proven to be efficient. The first part addresses the origin of the SAT, born from the Agricultural Colonization Trade Union Groups within the framework of the Law of Local Interest Colonization of 1940. Additionally, the legal framework that regulates them is reviewed, from Royal Decree 1776/1981 to Law 5/2011, which recognizes them as Social Economy entities. In the second part, a broader analysis based on time series is conducted, allowing for the study of the evolution of SAT in Spain. Both national and regional data are presented, highlighting the exponential growth of these entities in recent decades and their importance in the modernization of the Spanish agricultural sector. The third part includes new information about the territorial expansion of the SATs beyond their geographical limits, using data from 2024. The relationship between efficiency and economic growth is confirmed.

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ROMÁN-CERVANTES, C. & SUÁREZ-DOMÍNGUEZ, J. (2024): “Agrarian Transformation Societies in Spain: An Efficient Model of Agricultural Associationism”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 103-134. DOI: https://doi.org/10.7203/CIRIEC-E.112.29532

Why do we justify tax evasion? Empirical evidence from a Factorial Survey in Spain

Authors: Edurne Bartolomé Peral, Hermann Dülmer, Lluís Coromina

Keywords: Tax evasion, standard economic model, legitimacy-based model, morality, moral change, factorial survey.

Econlit Keywords: H26, H71

DOI: https://doi.org/10.7203/CIRIEC-E.112.24719

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For funding public goods, states are forced to collect taxes that reduce one`s income. Accordingly, taxes represent a burden, which rational individuals attempt to reduce. The standard economic model tries to explain tax evasion by taxpayer’s income, tax rates, risk of detection, and severity of penalties. To resolve the puzzle why observed tax compliance is much higher than predicted by this model, literature distinguishes between coercive compliance (standard economic model) and voluntary compliance (legitimacy-based model). The aim of this article is to analyse, for the first time, tax morality via a factorial survey experiment (vignette analysis) conducted 2017 among Spanish citizens. An advantage of using a factorial survey is that it allows testing simultaneously both, the impact of situational factors described in vignettes as well as of respondent characteristics on the justifiability of tax evasion. Potentially relevant personal factors were derived from Inglehart’s modernisation theory and from theories about morality and moral change. Among our situational factors, gross household income and a country’s level of corruption had the strongest impact on the justifiability of tax evasion. At the respondent level, multilevel analysis confirmed that older age cohorts, higher educated people, and respondents believing in basic moral principles significantly less justified tax evasion. Hence, our study confirmed that tax compliance goes beyond the mere calculation of personal material gain and loss. A practical implication is that the state should make increasing effort to exercise transparency and effectively convey citizens that the use of taxes is fair, equitable and free of corruption.

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BARTOLOMÉ, E., DÜLMER, H. & COROMINA, LL. (2024): “¿Por qué justificamos la evasión fiscal? Evidencia empírica a partir de una encuesta factorial en España”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 135-168. DOI: https://doi.org/10.7203/CIRIEC-E.112.24719

Measuring financial vulnerability in social and solidarity economy organizations: the case of chilean universities

Authors: Alejandro Díaz Ramos

Keywords: Nonprofit organizations, financial vulnerability, universities, Chile.

Econlit Keywords: G330, I23, L30, M410

DOI: https://doi.org/10.7203/CIRIEC-E.112.25697

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This study has quantitatively determined the levels of financial vulnerability that characterize the universities comprising the Chilean higher education system. The motivation for the study lies in the social implications of both financial deterioration and the eventual closure of university institutions, a phenomenon that has already led to the closure of some entities in Chile, resulting in a significant impact on the well-being of both students and academics. The work is based on the application of the model proposed by Trussel (2002), which was developed from a regression with a categorical dependent variable type “Logit”, implemented on financial information from non-profit entities. For the purposes of this research, the Trussel model was applied to the information contained in the audited annual financial statements of Chilean universities reported between the years 2014 to 2021. The results of the study show that overall, universities have maintained their level of vulnerability over time, despite the decrease in the number of vulnerable entities in the analyzed period. Particularly, it is observed that from the year 2016 onwards, the majority of entities decreased the probability of facing financial vulnerabilities, a fact that coincides with the implementation of the public policy related to the system of free access to higher education.

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DÍAZ, A. (2024): “Measuring financial vulnerability in social and solidarity economy organizations: the case of chilean universities”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 169-201. DOI: https://doi.org/10.7203/CIRIEC-E.112.25697

The Leader program in the face of the need to promote a more shared and participatory development strategy. Conclusions drawn from the Basque example

Authors: Juan Cruz Alberdi Collantes

Keywords: Rural development, local development, co-governance, agrarian policy, Basque Country.

Econlit Keywords: R1, R58, D78.

DOI: https://doi.org/10.7203/CIRIEC-E.112.27430

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In general terms, researchers support the progress of the Leader initiative, even those more critical, recognizing that few public programs have achieved such positive results for rural development. However, in the case of the Basque Country, which is characterized by having a single group covering its entire territory, a program devoid of a clear rural development strategy and supervised by public entities is observed. Through conversations with various actors, it is found that the strategy promoted is strongly limited by the intervention of the administration, does not address the challenges faced by each territory and does not guarantee the participation of the local population in its design and implementation. In contrast, local action groups in Spain are presented as more receptive to local participation and enjoy autonomy in defining lines of action. The research suggests choosing a more coherent territorial scope and proposes the provincial level as the most appropriate, advocating the creation of three local action groups in the Basque Country. This could foster a stronger consensus around the strategy to be implemented, boost collaboration between various groups operating in each territory and facilitate the elaboration of a Local Development Strategy that is more participatory and accessible to the local population.

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ALBERDI, J.C. (2024): “The Leader program in the face of the need to promote a more shared and participatory development strategy. Conclusions drawn from the Basque example”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 203-230. DOI: https://doi.org/10.7203/CIRIEC-E.112.27430

Social and solidarity economy and transformative economies. Scope and tensions in the Basque Country

Authors: Unai Villalba-Eguiluz

Keywords: Transformative Economies, Circular Economy, Social and Solidarity Economy, Eco-social transitions, Socio-Ecological Transitions.

Econlit Keywords: A13, B59, Q01, Q57.

DOI: https://doi.org/10.7203/CIRIEC-E.112.28299

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Transformative economies represent a heterogeneity of approaches and practices, often related to the social and solidarity economy, that seek to undertake eco-social transitions towards other alternative economic models. In the specific case of the circular economy, there is controversy in the literature about whether or not it belongs to the group of transformative economies, mainly depending on the specific approaches it adopts. In this article we contribute to delimiting and evaluating the transformative scope of the different proposals (based on criteria such as ecosocial commitment, or hierarchical/horizontal functioning), and we identify some of the tensions that transformative economies face in practice (such as those arising due to interactions with public institutions, maintenance of viability, or escalation). In addition, we provide a case study from the Basque Country, in which we contrast two different approaches: the vision of the circular economy typical of institutions like IHOBE and Basque Government, oriented mainly towards competitiveness; and another approach typical of social and solidarity economy networks, that is more oriented towards sufficiency. We conclude that competitiveness-oriented approaches cannot be considered belonging to the transformative economies; while sufficiency-oriented approaches do, as they often adopt other alternative concepts of social circularity.

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VILLALBA-EGUILUZ, U. (2024): “Social and solidarity economy and transformative economies. Scope and tensions in the Basque Country”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 231-256. DOI: https://doi.org/10.7203/CIRIEC-E.112.28299

A bottom-up methodology for a national baseline data collection of the social enterprise sector: the experience of Ireland

Authors: Lucas Olmedo Osuna, María José Ruiz Rivera, Lorraine Corcoran, Brendan Whelan

Keywords: Social enterprises, baseline data, methodology, social and solidarity economy statistics.

Econlit Keywords: C19, H00, I39

DOI: https://doi.org/10.7203/CIRIEC-E.112.27082

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The launch of Ireland’s National Social Enterprise Policy in 2019 represented a milestone for social enterprises in Ireland. However, the policy and previous reports stress the limited data about social enterprises at national level; against this background, the Irish Government commissioned in 2022 a research project to fill this gap. The aim of this paper is to discuss the process for establishing a methodology towards a baseline data collection exercise of social enterprises in Ireland, where official statistics do not account for this type of organisations. The methodology draws from conceptual frameworks and international experiences for building statistics of social and solidarity economy organisations, including social enterprises census and baseline exercises. Moreover, the methodology is informed by a consultation process with Irish stakeholders consisting of four focus groups (87 participants), 15 semi-structured interviews and three meetings with experts’ committees. The methodology shows how baseline information on social enterprises in Ireland was built through intermediaries lists and an ad-hoc survey. The dependence on intermediaries and the lack of publicly available financial data on social enterprises in Ireland poses challenges, especially in terms of validity. However, using an official definition, data triangulation from different intermediaries, trust and engagement developed through the consultation process partially address the challenges. The methodology developed is context-sensitive, focusing on Ireland; however, it allows for some degree of international comparability and offers guidelines for building baseline information of social enterprises, especially in countries where these organisations are not captured by official statistics.

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OLMEDO, L., RUIZ, M.J., CORCORAN, L. & WHELAN, B. (2024): “A bottom-up methodology for a national baseline data collection of the social enterprise sector: the experience of Ireland”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 257-286. DOI: https://doi.org/10.7203/CIRIEC-E.112.27082

Are there differences between cooperatives led by men and those led by women?. An analysis of the economic and financial outcomes in valencian cooperatives during the period 2008-2021

Authors: Rubén José Cuñat Giménez, Marta Cuñat Roldán

Keywords: Business management, cooperative, gender, Valencian Community, longitudinal analysis.

Econlit Keywords: B55, M10, M20, J16.

DOI: https://doi.org/10.7203/CIRIEC-E.112.27904

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Currently, there is still a great inequality between the number of companies managed by women and men. There are numerous barriers for women to be able to opt for management positions and it is necessary to make these obstacles visible. However, cooperatives, because of their values and principles, although they are no strangers to this situation, do make some differences. The aim of this paper is to analyse whether gender in the management of cooperatives influences their economic-financial results. For this purpose, a sample of 240 Valencian cooperatives active during the period 2008-2021 was taken, 191 led by men and 49 led by women, available in the SABI database, studying whether there are significant differences in the number of employees, income, results, solvency and indebtedness between the two groups. In general, there are no significant differences in the results obtained in cooperatives managed by women and men, although there are differences in the size and type of activity carried out by both groups in their enterprises. The results show that, although the cooperatives are not unrelated to the lower percentage of cooperatives managed by women than by men with respect to other types of companies, they do show a lower influence of gender on the results, indicating that these depend on other factors, such as the type of activity carried out and the size of the cooperative.

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CUÑAT, R.J. & CUÑAT, M. (2024): “Are there differences between cooperatives led by men and those led by women?. An analysis of the economic and financial outcomes in valencian cooperatives during the period 2008-2021”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 287-318. DOI: https://doi.org/10.7203/CIRIEC-E.112.27904

The Care Sector in the Asturian Social Economy. An Analysis from a Gender Perspective

Authors: Rosa Santero-Sánchez, Mª Isabel Martínez Martín, Pablo Soria Lavara

Keywords: Social Economy, care model, gender, woman, elderly, rural, Asturias.

Econlit Keywords: B55, J14, J81, P13, R11.

DOI: https://doi.org/10.7203/CIRIEC-E.112.27951

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Aging presents a key challenge, and the care sector is an emergent and strategic field, with considerable potential for job creation in response to rapidly growing social demands. As this sector expands, it necessitates a change in the model, which must be supported by community services. Here, the social economy has an opportunity for development.

Traditionally, jobs in the care sector have typically involved outsourcing family care and have been characterized by low social value, job insecurity, and limited career prospects, which reduces the sector’s attractiveness. In Asturias, the sector comprises highly feminized companies, where women confront both the constraints inherent in the sector, including its location in rural areas, and the typical gender disparities.

The purpose of this study is to examine the position of social economy firms and entities in Asturias that offer care-related services from a global perspective enhanced by a gender viewpoint. To do this, a mixed, quantitative methodology is used, which characterizes the participation of Social Economy’s companies in the services sector in the region, and a qualitative analysis through in-depth interviews and discussion groups were conducted with associations representing both care demand and supply, as well as experts in social services and innovation. The analysis results indicate that women play a crucial role in transitioning to the community model, and promoting actions is necessary.

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SANTERO-SÁNCHEZ, R., MARTÍNEZ, Mª.I. & SORIA, P. (2024): “The Care Sector in the Asturian Social Economy. An Analysis from a Gender Perspective”, CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 112, 319-347. DOI: https://doi.org/10.7203/CIRIEC-E.112.27951