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The economic efficiency of Irish dairy marketing co-operatives

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  • G.E. Boyle

    (Department of Economics, National University of Ireland, Maynooth, Maynooth, Co. Kildare, Ireland. E-mail: Gerry.Boyle@May.ie)

Abstract

This paper is concerned with an empirical test for the economic efficiency of Irish dairy marketing co-operatives. The paper develops a test for the pricing behavior of dairy marketing co-operatives based on previous work by R.J. Sexton, B.M. Wilson, and J.J. Wann (1989) and K. Conrad and R. Unger (1987). The proposed test is implemented with data for the Irish dairy-processing sector. The findings suggest that Irish co-operatives behaved “as if” they were profit maximizers, and we could find no evidence that this behavior coincided with postulated co-operative pricing rules. We conclude the paper with a discussion of the economic impact of the EU dairy quota on the Irish dairy-processing sector. We also discuss the emergence of Public Limited Companies (PLCs) as the dominant organizational structure in the Irish dairy sector. [JEL citations: D21; Q13.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 143-153, 2004.

Suggested Citation

  • G.E. Boyle, 2004. "The economic efficiency of Irish dairy marketing co-operatives," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 143-153.
    • Handle: RePEc:wly:agribz:v:20:y:2004:i:2:p:143-153
    DOI: 10.1002/agr.20000
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    References listed on IDEAS

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    1. Conrad, Klaus & Unger, Ralph, 1987. "Ex post tests for short-and long-run optimization," Journal of Econometrics, Elsevier, vol. 36(3), pages 339-358, November.
    2. Peter G. Helmberger, 1964. "Cooperative Enterprise as a Structural Dimension of Farm Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(3), pages 603-617.
    3. Sexton, Richard J., 1995. "A Perspective on Helmberger and Hoos' Theory of Cooperatives," Journal of Cooperatives, NCERA-210, vol. 10, pages 1-8.
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    Citations

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    Cited by:

    1. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Alí Colina Rojas & Pilar Zarzosa Espina, 2012. "Comparative productivity analysis between labour-managed firms and conventional capitalist companies in Spain," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(33), pages 11-41, January-J.
    3. Isidoro Guzmán Raja & Narciso Arcas Lario & Domingo García Pérez de Lema, 2006. "La eficiencia técnica como medida de rendimiento de las cooperativas agrarias," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 55, pages 289-311, August.
    4. MCarmen Martínez†Victoria & Narciso Arcas Lario & Mariluz Maté Sánchez Val, 2018. "Financial behavior of cooperatives and investor†owned firms: An empirical analysis of the Spanish fruit and vegetable sector," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 456-471, March.
    5. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    6. Caetano Luiz Beber & Sebastian Lakner & Ioannis Skevas, 2021. "Organizational forms and technical efficiency of the dairy processing industry in Southern Brazil," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-22, December.
    7. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    8. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    9. Senhaji, Arvid, 2008. "Duality theorems summarising some unambiguous qualitative comparative static results for processing cooperatives - The restricted profit function applied," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44374, European Association of Agricultural Economists.
    10. Isidoro GUZMÁN & Narciso ARCAS, 2008. "The Usefulness Of Accounting Information In The Measurement Of Technical Efficiency In Agricultural Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 107-131, March.
    11. Matyja, Małgorzata, 2017. "A Comparative Study of Profitability of Agricultural Cooperatives in Poland and Around the World," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 17(32, Part ), December.
    12. Natalia P. MONTEIRO & Odd Rune STRAUME, 2018. "Are Cooperatives More Productive Than Investor-Owned Firms? Cross-Industry Evidence From Portugal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 377-414, June.
    13. repec:vuw:vuwscr:18942 is not listed on IDEAS

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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