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The Use of Discriminant Analysis in Measuring Cooperative Growth Factors

Published online by Cambridge University Press:  10 May 2017

Brian M. Henehan
Affiliation:
Department of Agricultural Economics, Cornell University
Neil H. Pelsue Jr.
Affiliation:
Department of Agricultural and Resource Economics, University of Vermont
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Abstract

Vermont agricultural cooperatives were surveyed to investigate key factors contributing to cooperative success. Most of the cooperatives were formed within the last 15 years. Financial, organizational, and operational data were collected for selected years from 1974–1984.

Average annual changes in gross sales were used to divide cooperatives into low-growth and high-growth groups. Selected variables were identified to classify individual cooperatives into low- or high-performance groups with discriminant analysis.

Management experience and adoption of multi-year plans were the two factors found to have the most significant influence on cooperative sales growth.

Type
Articles
Copyright
Copyright © 1986 Northeastern Agricultural and Resource Economics Association 

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Footnotes

This research was supported by the Vermont Agricultural Experiment Station, University of Vermont, Burlington Hatch Project: VT380. The comments and suggestions of Cleve E. Willis and an anonymous reviewer are gratefully acknowledged.

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