IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v326y2023i2d10.1007_s10479-022-04916-9.html
   My bibliography  Save this article

Performance assessment of Dairy Cooperative Societies (DCSs): an AHP based composite index approach

Author

Listed:
  • Goutam Sutar

    (Thiagarajar School of Management (TSM) Madurai)

  • Rakesh Arrawatia

    (Institute of Rural Management)

  • Krantiraditya Dhalmahapatra

    (Thiagarajar School of Management (TSM) Madurai
    Indian Institute of Management)

  • Ashish Garg

    (Indian Institute of Technology)

  • Deepak Kumar

    (Virginia Tech)

Abstract

Dairy Cooperative Societies (DCSs) maintain the availability and supply of clean processed milk in accordance with consumer needs, as well as the provision of essential milk products of the appropriate standard to consumers at competitive prices. In this study, numerous aspects responsible for the success of India’s Dairy Cooperative Society (DCS) have been taken into account before developing a composite index. The criteria addressed include milk union support, DCS support, governance and management support, allied support, and common support factors for DCS performance evaluation. The current study is projected to empower the dairy industry by offering a tool that can evaluate the relative success of DCSs and assist milk unions and dairy organizations in tailoring their assistance to their specific requirements. We deployed the Analytical Hierarchal Process (AHP) to determine the weights of specified criteria and sub-criteria impacting DCS performance; these weights were deployed to determine the relative performance of a DCS using the composite index developed in the study. Criteria such as governance and management support given to members, and support received from milk unions have significant weightage- 0.3002, 0.2854, and 0.2715, respectively. We also deployed the suggested technique to conduct a comparative analysis of 98 DCSs identified from six Indian provinces constituted under NDP I (National Dairy Plan, Phase-I). Finally, the results of the sensitivity analysis have been presented to validate our proposed method.

Suggested Citation

  • Goutam Sutar & Rakesh Arrawatia & Krantiraditya Dhalmahapatra & Ashish Garg & Deepak Kumar, 2023. "Performance assessment of Dairy Cooperative Societies (DCSs): an AHP based composite index approach," Annals of Operations Research, Springer, vol. 326(2), pages 751-782, July.
    • Handle: RePEc:spr:annopr:v:326:y:2023:i:2:d:10.1007_s10479-022-04916-9
    DOI: 10.1007/s10479-022-04916-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04916-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04916-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rajendran, K. & Mohanty, Samarendu, 2004. "Dairy Co-Operatives And Milk Marketing In India: Constraints And Opportunities," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-8, July.
    2. 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.
    3. Lucie Lidinska & Josef Jablonsky, 2018. "AHP model for performance evaluation of employees in a Czech management consulting company," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(1), pages 239-258, March.
    4. Jasper Grashuis, 2020. "Agricultural firm survival: The case of farmer cooperatives in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 79-93, January.
    5. Constantine Iliopoulos & Rando Värnik & Maryline Filippi & Liis Võlli & Kaie Laaneväli-Vinokurov, 2019. "Organizational design in Estonian agricultural cooperatives," Post-Print hal-04010102, HAL.
    6. Seyed Rakhshan & Ali Kamyad & Sohrab Effati, 2015. "Ranking decision-making units by using combination of analytical hierarchical process method and Tchebycheff model in data envelopment analysis," Annals of Operations Research, Springer, vol. 226(1), pages 505-525, March.
    7. Kumar, Anjani & Saroj, Sunil & Joshi, P.K. & Takeshima, Hiroyuki, 2018. "Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India," Food Policy, Elsevier, vol. 75(C), pages 24-36.
    8. Squicciarini, Mara P. & Vandeplas, Anneleen & Janssen, Emma & Swinnen, Jo, 2017. "Supply chains and economic development: Insights from the Indian dairy sector," Food Policy, Elsevier, vol. 68(C), pages 128-142.
    9. Janssen, Emma & Swinnen, Johan, 2019. "Technology adoption and value chains in developing countries: Evidence from dairy in India," Food Policy, Elsevier, vol. 83(C), pages 327-336.
    10. Kanupriya Gupta & Devesh Roy, 2012. "Gains from coordination in milkfed dairy in Punjab," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 2(2), pages 92-114, October.
    11. Parliament, Claudia & Lerman, Zvi & Fulton, Joan R., 1990. "Performance of Cooperatives and Investor-Owned Firms in the Dairy Industry," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5, pages 1-16.
    12. Omkar Palsule-Desai, 2016. "Impact of equity and equality on stability and collusion in a decentralized network," Annals of Operations Research, Springer, vol. 238(1), pages 411-447, March.
    13. Feroze, S.M. & Chauhan, A.K., 2010. "Performance of Dairy Self Help Groups (SHGs) in India: Principal Component Analysis (PCA) Approach," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(2), pages 1-13.
    14. repec:hal:journl:halshs-01098762 is not listed on IDEAS
    15. Stefansdottir, Bryndis & Depping, Verena & Grunow, Martin & Kulozik, Ulrich, 2018. "Impact of shelf life on the trade-off between economic and environmental objectives: A dairy case," International Journal of Production Economics, Elsevier, vol. 201(C), pages 136-148.
    16. Omkar D. Palsule-Desai, 2016. "Impact of equity and equality on stability and collusion in a decentralized network," Annals of Operations Research, Springer, vol. 238(1), pages 411-447, March.
    17. Zvi Lerman & Claudia Parliament, 1990. "Comparative performance of cooperatives and investor-owned firms in US food industries," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 527-540.
    18. repec:lic:licosd:41019 is not listed on IDEAS
    19. Lerman, Zvi & Parliament, Claudia, 1990. "Comparative Performance of Food-Processing Cooperatives and Investor-Owned Firms in the U.S," Working Papers 232668, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    20. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    21. Dowson, Oscar & Philpott, Andy & Mason, Andrew & Downward, Anthony, 2019. "A multi-stage stochastic optimization model of a pastoral dairy farm," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1077-1089.
    22. Kanupriya Gupta & Devesh Roy, 2012. "Gains from coordination in milkfed dairy in Punjab," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 2(2), pages 92-114, October.
    23. Lie, Helene & Rich, Karl M. & van der Hoek, Rein & Dizyee, Kanar, 2018. "An empirical evaluation of policy options for inclusive dairy value chain development in Nicaragua: A system dynamics approach," Agricultural Systems, Elsevier, vol. 164(C), pages 193-222.
    24. Kumar, Anjani & Mishra, Ashok K. & Saroj, Sunil & Joshi, P.K., 2019. "Impact of traditional versus modern dairy value chains on food security: Evidence from India’s dairy sector," Food Policy, Elsevier, vol. 83(C), pages 260-270.
    25. T. Prabhuram & M. Rajmohan & Youchao Tan & R. Robert Johnson, 2020. "Performance evaluation of Omni channel distribution network configurations using multi criteria decision making techniques," Annals of Operations Research, Springer, vol. 288(1), pages 435-456, May.
    26. Pratap S. Birthal & Ramesh Chand & P. K. Joshi & Raka Saxena & Pallavi Rajkhowa & Md. Tajuddin Khan & Mohd. Arshad Khan & Khyali R. Chaudhary, 2017. "Formal Versus Informal: Efficiency, Inclusiveness and Financing of Dairy Value Chains in Indian Punjab," India Studies in Business and Economics, in: Gyanendra Mani & P.K. Joshi & M.V. Ashok (ed.), Financing Agriculture Value Chains in India, pages 57-87, Springer.
    27. Lerman, Zvi & Parliament, Claudia, 1990. "Comparative Performance Of Food-Processing Cooperatives And Investor-Owned Firms," Staff Papers 13455, University of Minnesota, Department of Applied Economics.
    28. Bo Hsiao & LihChyun Shu & Ming-Miin Yu & Li-Kang Shen & Ding-Jiun Wang, 2017. "Performance evaluation of the Taiwan railway administration," Annals of Operations Research, Springer, vol. 259(1), pages 119-156, December.
    29. Anneleen Vandeplas & Bart Minten & Johan Swinnen, 2013. "Multinationals vs. Cooperatives: The Income and Efficiency Effects of Supply Chain Governance in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 217-244, February.
    30. Aries Susanty & Arfan Bakhtiar & Nia Budi Puspitasari & Della Mustika, 2018. "Performance analysis and strategic planning of dairy supply chain in Indonesia," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 67(9), pages 1435-1462, November.
    31. Ramanathan, R. & Ganesh, L. S., 1994. "Group preference aggregation methods employed in AHP: An evaluation and an intrinsic process for deriving members' weightages," European Journal of Operational Research, Elsevier, vol. 79(2), pages 249-265, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Achilleas Kontogeorgos & Panagiota Sergaki & Anastasia Kosma & Vassiliki Semou, 2018. "Organizational Models for Agricultural Cooperatives: Empirical Evidence for their Performance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1123-1137, December.
    4. Josefina Fernandez-Guadaño & Manuel Lopez-Millan & Jesús Sarria-Pedroza, 2020. "Cooperative Entrepreneurship Model for Sustainable Development," Sustainability, MDPI, vol. 12(13), pages 1-11, July.
    5. repec:vuw:vuwscr:18942 is not listed on IDEAS
    6. Theo Benos & Nikos Kalogeras & Frans J.H.M. Verhees & Panagiota Sergaki & Joost M.E. Pennings, 2016. "Cooperatives’ Organizational Restructuring, Strategic Attributes, and Performance: The Case of Agribusiness Cooperatives in Greece," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 127-150, January.
    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. Lerman, Zvi & Parliament, Claudia, 1991. "Size and industry effects in the performance of agricultural cooperatives," Agricultural Economics, Blackwell, vol. 6(1), pages 15-29, October.
    9. Zhu, Qianyu & Wachenheim, Cheryl J. & Ma, Zhiyao & Zhu, Cong, 2018. "Supply chain re-engineering: a case study of the Tonghui Agricultural Cooperative in Inner Mongolia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    10. 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.
    11. Lerman, Zvi & Parliament, Claudia, 1990. "Performance of U.S. Agricultural Cooperatives: Size and Industry Effects," Working Papers 232667, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    12. Oliveira, Gustavo Magalhães de & Miranda, Bruno Varella & Saes, Maria Sylvia Macchione & Martino, Gaetano, 2023. "Opening the “black box” of food safety policy implementation: The efficiency-enhancing role of a private meso-institution," Food Policy, Elsevier, vol. 121(C).
    13. Anjani Kumar & Ashok K. Mishra & Sunil Saroj & Vinay K. Sonkar & Ganesh Thapa & Pramod K. Joshi, 2020. "Food safety measures and food security of smallholder dairy farmers: Empirical evidence from Bihar, India," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 363-384, June.
    14. A. M. Hind, 1994. "Cooperatives – Under Performers By Nature? An Exploratory Analysis Of Cooperative And Non‐Cooperative Companies In The Agri‐Business Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 213-219, May.
    15. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.
    16. Elena MELIA-MARTI & Ana Maria MARTINEZ-GARCIA, 2015. "Characterization And Analysis Of Cooperative Mergers And Their Results," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 479-504, September.
    17. Cadot, Julien & Féral, Arnaud, 2022. "Good Co-ops, Bad Co-ops : Financing Cooperatives in Asymmetric Information," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322550, Agricultural and Applied Economics Association.
    18. repec:ags:aaea22:335976 is not listed on IDEAS
    19. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    20. Zivkovic, Sanja & Hudson, Darren & Johnson, Phillip & Park, John, 2016. "A Study in Attitudes Shaping Cooperative Leadership," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229588, Southern Agricultural Economics Association.
    21. Marco Fazzini & Antonella Russo, 2014. "Profitability in the Italian Wine Sector: An Empirical Analysis of Cooperatives and Investor-Owned Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 130-137, July.
    22. Huma Neupane & Krishna P. Paudel & Mandeep Adhikari & Qinying He, 2022. "Impact of cooperative membership on production efficiency of smallholder goat farmers in Nepal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 337-356, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:326:y:2023:i:2:d:10.1007_s10479-022-04916-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.