This paper addresses the extent to which the scope of the smallholder cooperatives’ activities may affect their performance in commercializing their members’ surplus output. The paper uses a simple analytical framework to show that under specific conditions, a cooperative’s engagement in non-commercialization-related services may disrupt its membership structure and affect its commercialization performance. The model’s predictions are supported by recently-collected data on 176 smallholder grain marketing cooperatives in Ethiopia.
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