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A Descriptive Analysis of Milk Pricing Attribute Values for Cooperative and Independent Milk Handlers in New York State

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  • Munch, Daniel M.
  • Schmit, Todd M.
  • Severson, Roberta M.

Abstract

Dairy cooperatives market 85% of the milk produced by U.S. dairy farmers, although independent handlers remain relevant in many areas. Using handler report data from New York State, we provide a comparative financial analysis of pricing behavior by form of handler organization. Cooperative handlers provided price advantages to producers in terms of higher overall premiums and lower hauling costs; however, the net milk price advantage was only $0.20/cwt (about 1 percent) when all pricing components were considered and suggesting the value of cooperative ownership in dairy marketing includes other nonfinancial performance measures to substantiate such a large market share.

Suggested Citation

  • Munch, Daniel M. & Schmit, Todd M. & Severson, Roberta M., 2020. "A Descriptive Analysis of Milk Pricing Attribute Values for Cooperative and Independent Milk Handlers in New York State," Journal of Cooperatives, NCERA-210, vol. 35.
    • Handle: RePEc:ags:jlcoop:338669
    DOI: 10.22004/ag.econ.338669
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    References listed on IDEAS

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    1. Bravo-Ureta, Boris E. & Lee, Tsoung-Chao, 1988. "Socioeconomic and Technical Characteristics of New England Dairy Cooperative Members and Nonmembers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3, pages 1-16.
    2. Jensen, Kimberly L., 1990. "Factors Associated with the Selection of Cooperative vs. Proprietary Handlers of Milk in Tennessee," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5, pages 1-9.
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    Agribusiness; Industrial Organization;

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