There are a range of factors that influence the form that cooperation takes

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National culture plays an important role in how horizontal linkages are perceived and can act as a barrier to their formation, even in the face of strong evidence that they would be effective. The horticulture sector in Guatemala provides significant market opportunities (supermarkets) and strong potential for horizontal linkages among producers. However, a historical lack of confidence in the group concept and low levels of trust between producers and buyers hamper group development.

Conversely, cooperation resulting in clear economic benefits can promote trust among historically conflicting parties. In Egypt, dairy processors formed an association that broke down decades-old barriers of mistrust and through collaboration led to a dramatic increase in product development and diversification. The association also facilitated the development and acceptance of industry grades and standards.

Assisting a lead firm to upgrade can stimulate producers to form horizontal linkages to respond to new or increased demand. In Bangladesh, the Job Opportunities and Business Support project recruited a consultant with expertise in Italian footwear to help a local firm increase its access to export markets. This assistance drove up demand and, as the number of orders for shoes rose, clusters of entrepreneurs began joining forces to form producer groups to meet the growing demand. As these groups grew, they began supplying multiple export firms, which in turn began cooperating with one another on large orders.

Linkages that facilitate collective learning may be necessary to address cross-cutting constraints to producer and industry competitiveness. With issues such as soil and water resource management, horizontal linkages make it possible for best practices to be quickly identified, systematized and shared with other industry players. Ethiopian coffee producer groups adopted leeching ponds at washing stations to channel coffee cherry pulp and filter the water before returning it to the ground supply. At the end of the processing season, the groups drained the ponds and used the composted pulp to mulch their coffee trees.

Collective action is another form of cooperation (though it may not be perceived as such). Collective action occurs when many smallholders sell or buy at a single point to resolve scale and transaction cost issues. Collective action can also be used to deal with issues such as trust gradually.

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