Cooperatives, Wheat Diversity and the Crop Productivity in Southern Italy

This chapter presents an empirical study testing the relationship of cooperatives to crop diversity and productivity, using regional, time-series data. The potential role of agricultural institutions has been neglected in previous literature that has investigated the productivity effects of crop biodiversity. However, institutional structures, such as agricultural cooperatives, can influence aggregate level of crop biodiversity through their food processing and marketing role. Data are drawn from southern Italy, a megadiversity area for wheat where a broad range of old and new varieties, including landraces, are grown. Different wheat varieties have differentiated characteristics that can create farmer demand for diverse types, derived from processor and consumer demand for differentiated products. A Cobb-Douglas production function is estimated with a first-difference model and a dynamic panel model. Cooperative concentration is associated with a higher level of wheat diversity. Furthermore, intracrop diversity is beneficial to wheat productivity at the regional level, over the decade considered.