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The economic efficiency of Irish dairy marketing co-operatives

Author

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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.
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    Cited by:

    1. 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.
    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. 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.
    4. 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.
    5. repec:bla:annpce:v:89:y:2018:i:2:p:377-414 is not listed on IDEAS
    6. 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.

    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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