Marketing, Co-operatives and Price Heterogeneity: Evidence from the CIS Dairy Sector
Drawing on survey data, this paper identifies the determinants of variations in farm gate milk prices for three CIS countries (Armenia, Moldova and Ukraine). We apply a multi-level modeling approach, specifically a bootstrapped and selectivity bias corrected mixed-effects linear regression model. The analysis suggests three main strategies for farmers to improve the price received for their output: consolidation, cooperation and stable supply chain relationships. While selling through a marketing cooperative has a significant and positive effect on farm gate milk prices, the majority of non-members are reluctant to join. The size of dairy operations, trust and contracting also impact positively on the prices received by farmers. Policy implications are drawn.
|Date of creation:||Apr 2011|
|Contact details of provider:|| Web page: http://www.aes.ac.uk/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Liefert, William M. & Liefert, Olga, 2007. "Distortions to Agricultural Incentives in Russia," Agricultural Distortions Working Paper 48386, World Bank.
- Davis, Peter, 2005. "The Effect of Local Competition on Admission Prices in the U.S. Motion Picture Exhibition Market," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 677-708, October.
- Gorton, Matthew & Dumitrashko, Mikhail & White, John, 2006. "Overcoming supply chain failure in the agri-food sector: A case study from Moldova," Food Policy, Elsevier, vol. 31(1), pages 90-103, February.
- Cochrane, Nancy J., 2007. "Promoting Sustainable Market Institutions in the Transition Economies: the Role of International Assistance," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7785, European Association of Agricultural Economists.
- Besancenot, Damien & Vranceanu, Radu, 2004. "Quality and price dispersion in an equilibrium search model," Journal of Economics and Business, Elsevier, vol. 56(2), pages 99-116.
- Gardner, Bruce L. & Lerman, Zvi, 2006.
"Agricultural Cooperative Enterprise in the Transition from Socialist Collective Farming,"
Journal of Rural Cooperation,
Hebrew University, Center for Agricultural Economic Research, vol. 34(1), pages -.
- Gardner, Bruce L. & Lerman, Zvi, 2006. "Agricultural Cooperative Enterprise In The Transition From Socialist Collective Farming," Discussion Papers 7174, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
- Matthew Lewis, 2008. "PRICE DISPERSION AND COMPETITION WITH DIFFERENTIATED SELLERS -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 56(3), pages 654-678, 09.
- Perekhozhuk, Oleksandr, 2007.
"Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch,"
Studies on the Agricultural and Food Sector in Central and Eastern Europe,
Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 41, number 92322.
- Perekhozhuk, Oleksandr, 2007.
"Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch
[Market structure and pricing on the Ukrainian market for raw milk]," MPRA Paper 21958, University Library of Munich, Germany.
- Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch
- Swinnen, Johan F.M. & Maertens, Miet, 2006.
"Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries,"
2006 Annual Meeting, August 12-18, 2006, Queensland, Australia
25626, International Association of Agricultural Economists.
- Johan F. M. Swinnen & Miet Maertens, 2007. "Globalization, privatization, and vertical coordination in food value chains in developing and transition countries," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 89-102, December.
- Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
- Andrew Eckert & Douglas West, 2006. "Exit and Upgrading in Response to Entry: The Case of Gasoline Retailing," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 351-372.
- Erik Mathijs & Nivelin Noev, 2004.
"Subsistence Farming in Central and Eastern Europe : Empirical Evidence from Albania, Bulgaria, Hungary, and Romania,"
Eastern European Economics,
Taylor & Francis Journals, vol. 42(6), pages 72-89, November.
- Erik Mathijs & Nivelin Noev, 2004. "Subsistence Farming in Central and Eastern Europe : Empirical Evidence from Albania, Bulgaria, Hungary, and Romania," Eastern European Economics, M.E. Sharpe, Inc., vol. 42(6), pages 72-89, November.
- Alan T. Sorensen, 2000. "Equilibrium Price Dispersion in Retail Markets for Prescription Drugs," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 833-862, August.
- Kathryn Hendley & Peter Murrell & Randi Ryterman, 1998.
"Law, Relationships, and Private Enforcement: Transactional Strategies of Russian Enterprises,"
Electronic Working Papers
98-001, University of Maryland, Department of Economics.
- Kathryn Hendley & Peter Murrell & Randi Ryterman, 1998. "Law, Relationship, and Private Enforcement: Transactional Strategies of Russian Enterprise," William Davidson Institute Working Papers Series 72, William Davidson Institute at the University of Michigan.
- Sharon Brooks & Bereket Kebede & Edward Allison & John Reynolds, 2010. "The Balance of Power in Rural Marketing Networks: A Case Study of Snake Trading in Cambodia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1003-1025.
- World Bank, 2005. "Moldova : Opportunities for Accelerated Growth, A Country Economic Memorandum for the Republic of Moldova," World Bank Other Operational Studies 8698, The World Bank.
- Barron, John M. & Taylor, Beck A. & Umbeck, John R., 2004. "Number of sellers, average prices, and price dispersion," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1041-1066, November.
- Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
- Porto, Guido G., 2005.
"Informal export barriers and poverty,"
Journal of International Economics,
Elsevier, vol. 66(2), pages 447-470, July.
- Safavian, Mehnaz S. & Graham, Douglas H. & Gonzalez-Vega, Claudio, 2001. "Corruption and Microenterprises in Russia," World Development, Elsevier, vol. 29(7), pages 1215-1224, July.
- Gow, Hamish R. & Streeter, Deborah H. & Swinnen, Johan F. M., 2000.
"How private contract enforcement mechanisms can succeed where public institutions fail: the case of Juhocukor a.s,"
Blackwell, vol. 23(3), pages 253-265, September.
- Gow, Hamish R. & Streeter, Deborah H. & Swinnen, Johan F.M., 2000. "How private contract enforcement mechanisms can succeed where public institutions fail: the case of Juhocukor a.s," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), pages -, September.
- Lerman, Zvi & Csaki, Csaba & Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank.
- J. Sauer & B. Balint, 2008. "Distorted prices and producer efficiency: the case of Romania," Journal of Productivity Analysis, Springer, vol. 29(2), pages 131-142, April.
- Cocks, Jack & Gow, Hamish R. & Westgren, Randall E., 2005. "Public Facilitation of Small Farmer Access to International Food Marketing Channels: An Empirical Analysis of the USDA Market Assistance Program in Armenia," 2005 Annual meeting, July 24-27, Providence, RI 19295, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
When requesting a correction, please mention this item's handle: RePEc:ags:aesc11:108938. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.