Paris: A global crisis on an unprecedented scale

Analysts are unanimous. The current situation heralds a global crisis of unprecedented scale.

Food prices reached levels worthy of the first oil crisis, well above the 2008 index, which led to food riots. How could we reach such market tensions in a few days? Wheat, energy and fertilizer form “new” geopolitical weapons and are skillfully used in current conflicts.

Pre-conflict market tensions have resulted in an almost unprecedented price surge in size and speed in response to fears of reduced availability due to a combination of previous actions by Russia and China. This global market turmoil has brought very contrasting results between China and the United States, while Europe is now forced to make major and urgent revisions to its CAP, which cannot fail. You will never be destined. Then, at the mercy of other forces whose ambitions have been realized by concrete actions, they respond to delays when there is no common strategy.

While agricultural prices were in the spotlight, we saw how co-operatives reward their members. Why does the governance of these separate entities play such an important role in profit sharing? In a series of three articles co-authored with Xavier Hollandts, we return to the conclusions of the parliamentary report by St├ęphane Travert and Fabien Di Filippo and explore the various factors that influence the quality of their relationships with members. Cooperative. They face high expectations not only in terms of partner rewards, but also in terms of their actual involvement in the lives of co-operatives and their decisions.

The first part lays the foundations necessary to understand the following factors about the observable distribution of value in the co-operative world and the keys to different modes of governance: Co-operatives must be able to secure the lowest prices that their members can tolerate and generate profits for investment, development, or distribution of rebates. This management of the co-operative must be done in consultation with its members. Members must understand the decisions made, the pricing formulas adopted, and largely adhere to the strategies pursued. But to do so, the situation must have been explained, discussed, and adopted.

The second section lists four factors specific to the co-operative model that can interfere with this function: communication, co-operative attachment, lack of counterpower, and co-operative size. Therefore, these four factors, considered “intrinsic,” directly affect the quality of the relationship between members and co-operatives. This is especially reflected in the degree of participation in co-operative-sponsored meetings and conferences.

But in the end, why do co-operatives pay less to their members than “private” members? The last part focuses on the economic environment of the co-operative. Companies like Danon may decide to abandon producers in pursuit of new strategies, but co-operatives ensure the collection of production for all members no matter what happens. is needed. Even if the market isn’t there … it has to look for the best possible valuation and may need to diversify through holding companies to add value in new sectors. However, becoming a subsidiary is also a gateway to external shareholders, which contributes to a sense of disposition among members and fuels dissatisfaction when business performance is poor …