Journal of Jiangxi University of Finance and Economics ›› 2025, Vol. 0 ›› Issue (6): 112-124.

• Research on Agricultural, Rural and Farmer Issues: Special Topic on Scale Management • Previous Articles     Next Articles

Can Industrial Operation of Cooperatives Promote Transformation of Farmers’ Green Production? From the Perspectives of Horizontal Integration and Vertical Extension

Li Qi   

  1. Qufu Normal University, Rizhao 276826, China
  • Received:2024-02-04 Revised:2025-06-28 Online:2025-11-25 Published:2025-11-28

Abstract: Cooperatives, as the main carrier of modern agriculture construction in China, are reshaping their operation modes and driving methods in the process of promoting industrial operation of agriculture. This reshaping is expected to impact the transformation of farmers’ green production. From the dual perspectives of horizontal integration collaboration and vertical extension, this paper utilizes the survey data from 963 vegetable growers in Shandong Province to conduct an empirical study. The findings show that participation in the industrial operation of cooperatives can significantly promote the transformation of farmers’ green production. This effect stems from the service scale formed in the horizontal integration collaboration of cooperatives, as well as the brand building and e-commerce sales in the vertical extension. However, the leading scale effect formed in horizontal integration collaboration does not significantly promote this transformation. If cooperatives with established horizontal integration additionally implement vertical extension, their ability to promote green production transformation will be further strengthened. Compared to cooperatives operating independently, the “enterprise + cooperative” model can enhance the positive role of vertical integration in farmers’ green transformation, but its regulatory effect on horizontal integration is not significant. The heterogeneity analysis shows that cooperatives led by capable individuals through brand building significantly outperform those collectively managed by the masses in driving green transformation. Thus, it is necessary to strongly support cooperatives to deeply participate in industrial industrialization management, innovate the organizational model of cooperative industrialization management, and improve the standardized and green production and operation level of cooperatives.

Key words: cooperatives, agricultural industrialization, horizontal integration, vertical extension, agricultural green transformation

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