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The Organizational Forms Of New Zealand Agricultural Sector

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New Zealand has a long farming history and agriculture has been one of the country’s largest economic sectors, with 95 percent of the dairy products being exported contributing to about 30 percent of the world’s trade (MAF, 2003). The land reforms which happened between late 19th and early 20th century emerged a large number of small and medium sized farms for the purpose of promoting the wealth of the settler society (Hamer, 1988). As a result of the introduction of refrigeration which boomed farm productivity (Greasley & Oxley, 2008), these small family famers have come together to create rural cooperatives in order to provide better commodity chains for their export products, and eventually to protect their own interests (Hunter, 2005). Following the deregulation of New Zealand’s agricultural sector which started from 1984, both organizing, family farming and cooperatives have gone through major transformations. This essay aims to analyze both organizational forms in New Zealand agricultural sector, in terms of how both are shaped by economic, political and ideological in the society, thus providing a better understanding of the similarities, differences and the tensions created between both economic units.

Family farming and cooperative organizations are different in the way their profits are distributed. Academic theorists such as Grasson and Errington have differentiated family farms from cooperative farms on the basis of economic value returns such as the business

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