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Changing governance in the EU milk supply chain

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  • Krol, Noortje
  • Polman, Nico
  • Peerlings, Jack
  • Nikolov, Dimitre

Abstract

With the 2008 EU's CAP reform the governance of the EU's dairy sector changes. This paper focuses on governance structures between dairy farms and milk processors. To get insight in regional differences within the EU, a literature research and interviews are conducted in three case study areas, namely: the Netherlands, Bulgaria and France. Results show that in these countries both farmers and processors have incentives to form hybrid governance structures with a higher level of control compared to the current structures. Most dairy cooperatives have no additional advantage in managing milk quality and milk supply compared to investor owned firms. Chain integration could go a step further in Bulgaria compared to the Netherlands and France given the institutional environment that is not expected to guarantee milk quality and the focus on the export of milk. --

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Bibliographic Info

Paper provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance with number 52703.

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Date of creation: 2010
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Handle: RePEc:zbw:iamo10:52703

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Keywords: Agricultural Markets; Marketing; Governance and Cooperatives;

References

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  1. Oliver E. Williamson, 2002. "The Theory of the Firm as Governance Structure: From Choice to Contract," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(3), pages 171-195, Summer.
  2. Zohra Bouamra-Mechemache & Roel Jongeneel & Vincent Requillart, 2008. "Impact of a gradual increase in milk quotas on the EU dairy sector," Working Papers 28231, Institut National de la Recherche Agronomique, France.
  3. Brousseau, Eric & Glachant, Jean-Michel, 2008. "New institutional economics: a guidebook," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/12319, Paris Dauphine University.
  4. Bachev, Hrabrin, 2008. "Post-communist Transformation in Bulgaria – Implications for Development of Agricultural Specialization and Farming Structures," MPRA Paper 7771, University Library of Munich, Germany.
  5. Menard, Claude, 1995. "Markets as institutions versus organizations as markets? Disentangling some fundamental concepts," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 28(2), pages 161-182, October.
  6. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 25(1), pages 27-48, April.
  7. Oxley, Joanne E., 1999. "Institutional environment and the mechanisms of governance: the impact of intellectual property protection on the structure of inter-firm alliances," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 38(3), pages 283-309, March.
  8. Lyons, Bruce R, 1996. "Empirical Relevance of Efficient Contract Theory: Inter-firm Contracts," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 12(4), pages 27-52, Winter.
  9. Paul L. Joskow, 2008. "Lessons Learned from Electricity Market Liberalization," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Special I), pages 9-42.
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