A Study in Cooperative Failure: Lessons from the Rice Growers Association of California

Bond, Jennifer Keeling; Carter, Colin A.; Sexton, Richard J.

A Study in Cooperative Failure: Lessons from the Rice Growers Association of California

Autores

Bond, Jennifer Keeling

Carter, Colin A.

Sexton, Richard J.

Descripción

This case study on the former Rice Growers Association (RGA) analyzes the effects of a variety of business decisions and market changes, relative to the ongoing Farmers’ Rice Cooperative (FRC). Interview and survey findings reveal that many respondents felt RGA’s Board of Directors was passive and, despite its large size, lacked the necessary expertise to direct management and represent the best interest of the broader cooperative membership. In the midst of challenging market conditions, RGA’s management teams were accused of making a number of poor business decisions that led to significant financial stress and the eventual dissolution of the firm.