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UNIVERSITY OF ALBERTA Department of Rural Economy
AREC 482 B1 Course Outline
Course: AREC 482 - Cooperatives and Alternate Business Institutions (Winter Session 2010)
Class Location: 511 GSB
Class Time: MWF – 9.00am to 9.50am
Instructor: Ellen Goddard
Office: 547 GSB
Email: [email protected]
Office Hours: Fridays 2:30pm – 4.00pm. (Appointments may also be arranged by seeing me after class or via email).
University of Alberta policy about course outlines can be found in Section 23.4(2) of the University Calendar.
Course Objectives:
Students undertaking this course will gain :
An increased understanding of the domestic and international structure of the agri-food business
An increased understanding of cooperatives as a business institution and their role in agribusiness, particularly in Canada.
An increased understanding of the decision making strategies and the evolution of agribusiness firms and cooperatives in Western Canada.
In undertaking this course, the relevant literature on the economic theory of industrial organization, cooperatives and the role of different types of firms in a market economy will be examined.
Recommended Prerequisite: Econ 281, or AREC 200, or AREC 365.
Course Materials:
Reference lists will be distributed throughout the course. As well, the following references provide a broad coverage of the course material.
1. Cobia, Davis. Cooperatives in Agriculture. Prentice Hall, Englewood Cliffs, New Jersey, 1989 (available in the Resource Room).
2. “Economics of Cooperatives.” Class Notes, University of Saskatchewan. Murray Fulton, Sept. 2001 – available in the Resource Room
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3. Internet References:
University of Saskatchewan
Cooperative Secretariat
University of Wisconsin
USDA Service to Cooperatives
National Council of Cooperatives
4. For a good overview of the importance of co-operatives in the agri-food sector it is worth having a look at the following publications:
Profile of Canadian Agricultural Cooperatives 1998-2002, downloadable from e-class site Profile of Canadian Agricultural Cooperatives 1986-2000, downloadable from e-class site
Course Conduct:
The class will be a combination of lectures, case study discussions, and student presentations.
The course will also rely on a very basic understanding of calculus (where necessary refresher information will be provided). To enhance understanding of course material, assignments will be made available to students. An E-class site will be maintained for this course and students are encouraged to look at material there.
Course Outline:
(1) Introduction to Industrial Organization in the Agrifood Business (2) Introduction to the Cooperative Model
- Structure and scope of cooperatives - Economic rationale for a cooperative - Problems in cooperatives
- Comparison of a cooperative to a private firm (3) Economic Theory of Cooperatives
- Consumer cooperative - Producer cooperative (4) Market Structure in Agribusiness
- Game theory and strategic interactions - Role of Cooperatives
(5) Cooperative/Firm Strategies
- Marketing and Advertising, Branding - Management and Planning
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- Financing
(5) New Generation Cooperative (NGC)
- NGCs versus traditional cooperatives - Operations of NGCs
- Case Studies (US and Canada)
(6) Marketing Boards, Commissions and other Canadian institutions
Course Evaluation:
In class presentation 15%
Midterm examination (Friday, Feb. 12) 20%
Final examination (9 am Monday April 26) 35%
Book report (Due on Friday, March 19) 10%
Term paper (Due on Monday, April 12) 20%
Total 100%
The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour
and avoid any behaviour that could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offense. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.
Final grades in this class will be based directly on the grades achieved for the various activities. These percentages will be translated directly into final letter grades based on the University’s grading system. Students required to miss assignment deadlines or examinations should follow the procedures identified in the University of Alberta Calendar 2009-2010, Sections 23.4 and 23.5.6.
The in class presentations will be organized about once every week starting after the winter break. Students will be assigned in pairs to present material on the class project on the role of co-operatives and credit unions in Canadian society. Participation from the rest of the class will be vital at each presentation and the material covered in the presentations will be incorporated into midterms and examinations.
Assignments will also be distributed for additional understanding of class material and preparation for midterms and examinations. As well it will be possible for you to submit a draft of your term paper for my comments prior to the final submission if you wish. The date for submission of draft term papers will be March 29, 2010. Suggested term paper topics will be
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distributed and students must select one or have another topic approved by the middle of January.
One thing that may be of interest to some of you is the possibility to participate in:
American Agricultural Economics Association meetings to be held this year in Denver, Colorado (July 25 – July 27, 2010). There is a student section with the possibility to present papers or participate as a team in the Academic Bowl, a team quiz event.
Submission dates for the student competitions will be in mid-April.
The Alberta Agricultural Economics Association annual student poster competition (held in Red Deer in early May)
The Pacific Northwest Regional Economic Conference Student Paper competition (papers to be submitted in April, conference held in Missoula, Montana in May 20-21, 2010)