COOPERATIVE GOVERNANCE: THE PROBLEM OF HORIZON IN AGRICULTURAL COOPERATIVE OF RIO GRANDE DO SUL

Abstract

The study aimed to analyze the horizon problem in agricultural cooperatives in Rio Grande do Sul, as well as the strategies employed by the cooperatives to minimize them. This problem arises due to the temporal perspective of the cooperated be different of the cooperative organization, because the cooperative members tend to prioritize the projects and the investments that aim to benefit their economic activity in the short term. Methodologically, we chose the mixed method in the execution of search, ie, we were used qualitative and quantitative information. Thus, we sampled 10% of agricultural cooperatives linked to the Organization of Cooperatives of the State of Rio Grande do Sul (OCERGS). It was found that the cooperatives that have the "grains", as the main business activity, presented more intensity of the horizon problem. Most of the variables used to capture this problem showed elevated levels of agreement. It was also observed that the financial condition of the cooperative affects the incidence of the horizon problem. Among the main strategies to minimize this problem are: the distribution of surpluses, the programs of relationships and incentives with the membership and the return of social capital to the cooperated in the cooperative after large period. This study highlights the need to adopt new organizational models for overcoming of the horizon problem, but to achieve this strategy it is necessary to update current legislation taking into account the new environment of agribusiness.