An Esasay on the Performance of Farming Cooperatives from Economic Calue Added (EVA®)

Abstract

The purpose of this article is to identify whether and how often an economic value is created in agricultural cooperatives, using the concept of Economic Value Added (EVA). After analyzing and discussing the results, even considering the limitations of one case study, one perceives that there are no incentives as yet likely to enable the cooperatives to capitalize, grow, and seek such an economic efficiency as to allow their associates to invest in their business and be assured of a return on what remains from the operations. A higher return would encourage new capital contributions by the associates; however, this is not what occurs due to their low income.