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Producer Organizations and Members Performance in Hog Production

Author

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  • Duvaleix-Tréguer, Sabine
  • Gaigné, Carl

Abstract

In this paper, we study how the boundary of hog producer organizations affects the economic performance of their members. From a French database providing economic and technical information on 886 hog farms, we estimate a system of equations including demand for input and output supply in order to evaluate marginal costs and margins at farm level. We show that belonging to a cooperative that develops financial links upstream and downstream allows farmers to reach, on average, lower marginal costs higher margins. In addition, even if the marketing cooperatives or bargaining associations allow their members to enjoy higher hog price than the average price, the farmers belonging to this type of producer organizations do not exhibit enough cost economies to reach large margins.

Suggested Citation

  • Duvaleix-Tréguer, Sabine & Gaigné, Carl, 2015. "Producer Organizations and Members Performance in Hog Production," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205494, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea15:205494
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    File URL: http://ageconsearch.umn.edu/record/205494/files/PO_HogProduction_2015AAEA_WAEA.pdf
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    References listed on IDEAS

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    1. Giancarlo Moschini, 1988. "The Cost Structure of Ontario Dairy Farms: A Microeconometric Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(2), pages 187-206, July.
    2. Sabine Duvaleix-Tréguer & Carl Gaigné, 2016. "On the nature and magnitude of cost economies in hog production," Agricultural Economics, International Association of Agricultural Economists, vol. 47(4), pages 465-476, July.
    3. Svend Rasmussen, 2010. "Scale efficiency in Danish agriculture: an input distance--function approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(3), pages 335-367, September.
    4. J. Fernandez-Cornejo & C. M. Gempesaw II & J. G. Elterich & S. E. Stefanou, 1992. "Dynamic Measures of Scope and Scale Economies: An Application to German Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 329-342.
    5. Hueth Brent & Marcoul Philippe, 2003. "An Essay on Cooperative Bargaining in U.S. Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-15, March.
    6. Catherine J. Morrison Paul, 2001. "Cost Economies And Market Power: The Case Of The U.S. Meat Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 531-540, August.
    7. Antonio Alvarez & Carlos Arias, 2003. "Diseconomies of Size with Fixed Managerial Ability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 134-142.
    8. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
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    Cited by:

    1. Jerzy Michalek & Pavel Ciaian & Jan Pokrivcak, 2018. "The impact of producer organisations on farm performance: A case study of large farms in Slovakia," JRC Working Papers JRC108059, Joint Research Centre (Seville site).

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