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Factors Associated with the Selection of Cooperative vs. Proprietary Handlers of Milk in Tennessee


  • Jensen, Kimberly L.


Factors that influenced the decision by dairy farmers to select cooperatives milk handlers versus proprietary handlers were examined. In a 1989 survey, Tennessee dairy farmers were asked to indicate reasons that influenced their choice of milk handler, such as better price, an assured market, and better service. Characteristics of the dairy farmers were then compared between those who selected a specific reason and those who did not. Better service and an assured market were the most often cited reasons by cooperative members, and higher price and lower deductions were cited more often by nonmembers. Farmers who cited price as a reason tended to have larger dairy farms, be less diversified, and more indebted than those who did not cite price as a reason. Those who selected service as a reason had more dairying experience and were less indebted than those who did not select service.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:joagco:46231

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    Cited by:

    1. Peter Ă–sterberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.
    2. Enander, John & Melin, Andreas & Nilsson, Jerker, 2009. "Social influences in forest owners' choice between co-operative and investor-owned buyers," Department of Economics publications 4257, Swedish University of Agricultural Sciences, Department of Economics.
    3. Morfi, Chrysa & Ollila, Petri & Nilsson, Jerker & Surry, Yves & Feng, Li & Karantininis, Konstantinos, 2014. "The switching behaviour of Finnish co-operative members in relation to their commitment and loyalty," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182774, European Association of Agricultural Economists.
    4. Viergutz, Tim & Schulze-Ehlers, Birgit, 2016. "The Spatiotemporal Interrelatedness of Farmers’ Switching Decisions," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235882, Agricultural and Applied Economics Association.


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