Exploring the inclusiveness of producer cooperatives

Given the relevance of producer cooperatives in policy debates around rural development, agricultural sustainability and inclusive business, there is surprisingly little information on whether these cooperatives are inclusive of smallholders. This paper reviews conceptual discussions and empirical evidence on the notion of a producer cooperative as an inclusive business. Three organisational characteristics may affect the inclusiveness of producer cooperatives: community-orientation versus market-orientation; open versus closed membership; who is represented in the governance of the cooperative. When cooperatives evolve from community-orientation towards market-orientation, they are likely to become less inclusive.