Marketing, Co-operatives and Price Heterogeneity: Evidence from the CIS Dairy Sector
AbstractDrawing on survey data, this paper identifies the determinants of variations in farm gate milk prices for three CIS countries (Armenia, Moldova and Ukraine). We apply a multi-level modeling approach, specifically a bootstrapped and selectivity bias corrected mixed-effects linear regression model. The analysis suggests three main strategies for farmers to improve the price received for their output: consolidation, cooperation and stable supply chain relationships. While selling through a marketing cooperative has a significant and positive effect on farm gate milk prices, the majority of non-members are reluctant to join. The size of dairy operations, trust and contracting also impact positively on the prices received by farmers. Policy implications are drawn.
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Bibliographic InfoPaper provided by Agricultural Economics Society in its series 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK with number 108938.
Date of creation: Apr 2011
Date of revision:
price heterogeneity; milk; cooperatives; Armenia; Moldova; Ukraine; Marketing; O13; P32; Q13;
Other versions of this item:
- Johannes Sauer & Matthew Gorton & John White, 2012. "Marketing, cooperatives and price heterogeneity: evidence from the CIS dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 165-177, 03.
- Sauer, Johannes & Gorton, Matthew & White, John, 2011. "Marketing, Cooperatives and Price Heterogeneity: Evidence from the CIS Dairy Sector," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114489, German Association of Agricultural Economists (GEWISOLA).
- Sauer, Johannes & Gorton, Matthew & White, John, 2011. "Marketing, cooperatives and price heterogeneity: evidence from the CIS dairy sector," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103722, Agricultural and Applied Economics Association.
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- P32 - Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-08-15 (Agricultural Economics)
- NEP-ALL-2011-08-15 (All new papers)
- NEP-MKT-2011-08-15 (Marketing)
- NEP-TRA-2011-08-15 (Transition Economics)
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