Agricultural Economics and Development

Agricultural Economics and Development

Measuring the Efficiency of Agricultural Cooperative Companies in Mazandaran Province of Iran by Focusing on Knowledge-Based Production Cooperatives

Document Type : Original Article

Authors
1 Asistant Prof., Department of Agricultural Economic, Faculty of Agricultural Engineering, Agricultural Sciences and Natural Resources University Sari. Mazandaran. Iran.
2 Ph.D Student of Agricultural Economics, Department of Agricultural Economic, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University. Mazandaran. Iran
Abstract
Introduction: Food security is one of the main conditions for realizing national security. In respect to food security, there are some vital elements that have maximal impact on the food supply including obtainability, right to use and stability. Achieving food security in Iran depends on increasing the productivity and efficiency of the country's agricultural sector. In this regard, agricultural cooperatives can play an effective role in improving the productivity of this sector by carefully principled planning for the optimal use of water and soil resources. The objective of agricultural cooperative movement in developing countries is not only to renew old economical methods, but also to create fair economic and social conditions. This study aimed at measuring the technical, VRS-technical and scale efficiency of cooperative companies and investigating knowledge-based indicators on their efficiency. 
Materials and Methods: In this study, firstly, by applying Data Envelopment Analysis (DEA) method and DEAP 2.1 software, technical efficiency of 29 rural production cooperative companies in Mazandaran province of Iran was measured. DEA is an exciting flexible method of assessing relative efficiency among Decision-Making Units (DMUs) using the same technology and in the same or very similar organizational circumstances. One of the reasons that DEA is an important management tool for diagnosis among the DMUs is its ability to provide guidance for how nonefficient units can become more efficient. For this purpose, the full number sampling method was carried out for the concerned cooperatives in 2022. Then, using the econometric model and EViews.10 software, the factors influencing the technical efficiency were extracted. In this study, Tobit regression analysis was also used to measure the relationship between the knowledge-based indicators and the efficiency of production cooperatives among the listed companies of Mazandaran province. The Tobit regression analysis was used rather than Ordinary Least Squares (OLS) regression because of its nature of censored dependent variable of efficiency for firms. 
Results and Discussion: The study results showed that 17 percent of the cooperatives had full technical efficiency and there was a difference of 53.3 percent between the efficiency of reference cooperatives and the most inefficient cooperatives; in addition, the knowledge-based variables such as employing Chief Executive Officers (CEOs) with higher education at the head of cooperative companies, increasing communication with scientific centers, universities, science and technology parks, using the Internet and mass communication networks, and using new technology in the production of agricultural crops had significantly positive effects on the efficiency of cooperatives.
Conclusion and Suggestions: Based on the study results, it is suggested that the government provides more financial support to the knowledge-based cooperatives that focus on the role of knowledge in advancing their goals. In addition to financial support, social and economic policy implemented by the government as well as legislation are recognized as one of the main factors influencing the development of cooperatives. Appropriate policy and legal framework are vital for successful agricultural cooperatives. In general, the government can act as a promoter and facilitator by generating policies and programs to support cooperatives, developing adequate infrastructure and social services, and eliminating any barriers to cooperative development. Public policy support can also gain more specific forms. The areas of public policy support may include human resource development, research and management consultancy, accountancy and auditing, information technology, laws and taxation, and relations with the private sector. Finally, the education and training provided by the state before and after establishing a cooperative is of crucial importance.
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