AGRICULTURAL COOPERATIVE SUPPLY CHAIN MANAGEMENT IN MALAYSIA

In the National Cooperative Policy 2002-2010, the government of Malaysia has targeted the cooperative movement as the fourth generator of economic growth after services, manufacturing and agriculture. Cooperatives are expected to contribute 5% of the GDP in 2013 and 10% by 2020. However, in 2008, cooperatives contributed just 1% of the GDP. The majority of cooperatives are small and their turnover is less than RM200,000 per annum. One of the possible reasons for their small turnover is their inability to manage their supply chains. This study will analyze the elements of agri¬cultural cooperative supply chain management and its influence on performance. The study will explore the influence of individuals, suppliers, quality, logistics and govern¬ance on supply chain performance. Performance is evaluated using four measures: customer satisfaction, board satisfaction, members’ satisfaction and financial per¬formance. A conceptual model is examined with data collected from 252 agricultural cooperatives in Malaysia. The results indicate that quality, technology and logistics have a positive significant impact on customer satisfaction, board satisfaction and cooperative members’ satisfaction and financial performance.