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Factors Influencing Farmers' Selection Of A Milk Handler

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Author Info

  • Kilmer, Richard L.
  • Lee, Jonq-Ying
  • Carley, Dale H.
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    Abstract

    A structural probit model is estimated to determine the change in the probability of selecting a milk handler. Cooperatives are thought to have lower prices and higher deductions than independent milk handlers and these factors reduce the probability that a farmer will select a cooperative by 0.39 and 0.32. Cooperatives are thought to have better services and an assured market and payment than independent mile handlers and these factors increase the probability that a farmer will select a cooperative by 0.20 and 0.26. This indicates that many cooperative members value monetary characteristics over non-monetary characteristics.

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    File URL: http://purl.umn.edu/15174
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    Bibliographic Info

    Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

    Volume (Year): 26 (1994)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:joaaec:15174

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    Web page: http://www.saea.org/jaae/jaae.htm
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    Related research

    Keywords: Cooperatives; Processors; Attributes; Selection; Probit; Dairy; Livestock Production/Industries;

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    Cited by:
    1. Gabor G. Szabo & Krisztina Bardos, 2005. "Vertical Coordination by Contracts in Agribusiness - An Empirical Research in the Hungarian Dairy Sector," IEHAS Discussion Papers 0515, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.

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