The Role of Cooperatives in Transaction Costs Reduction of Agricultural Enterprises Regarding Potato Farms in the Qurveh Township

Transaction costs of agricultural enterprises are an affective factor on product cost price, net exchange price and farmer’s participation in market. The aim of this survey research was to examine the role of agricultural cooperatives in reducing the transaction costs of Potato production enterprises in Qurveh Township. The sample size (351) was obtained by Bartlet Table and the sampling method was Multistage Cluster. For data collection questioners have been used which its validity was verified by viewpoints of panel of experts and reliability by Tests-Retest. The results showed that farmers cooperative members are facing with lower transaction costs(41%) and their participation in markets outside the province have increased significantly. the variable of membership in the cooperatives could be entered in the Probit model to estimate the farmers participation in relevant market. On the other hand, transaction costs included the cost of information and measurement, significantly entered in the Logit model to estimate the membership of farmers in the cooperatives. Also, index of relations network, cost price and transaction volume were entered into the model.