Systematic utilization mechanism of marketing channels and its impact on the operational efficiency of agricultural cooperatives in China

Abstract The application and selection of marketing channels in agricultural cooperatives significantly impact their operational efficiency. To verify the effectiveness of agricultural cooperatives in product distribution and to establish a more systematic and efficient channel network, this study first compares and analyzes the diversified marketing channels of cooperatives using two-stage survey data from China. Then, a static game model with complete information is constructed to explore the impact of marketing channel selection on the operational efficiency of agricultural cooperatives under different contractual relationships. The research surveyed and interviewed key leaders of 78 agricultural cooperatives and collected data on 449 marketing channels. The findings indicate that agricultural cooperatives in China can utilize at least nine marketing channels to sell their products. Compared to tightly structured market environments, agricultural cooperatives achieve greater operational returns in loosely contracted market structures. The simultaneous use of multiple channels enables agricultural cooperatives to capture a significant portion of the profits within the agricultural product value chain, thereby maintaining the effectiveness of the cooperative’s existence. The results provide strategic guidance for developing efficient marketing channel networks for agricultural cooperatives in developing countries and assist policymakers in adjusting and optimizing support policies for agricultural cooperatives.