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Marketing, Cooperatives and Price Heterogeneity: Evidence from the CIS Dairy Sector

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  • Sauer, Johannes
  • Gorton, Matthew
  • White, John

Abstract

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. Basierend auf Umfragedaten identifiziert diese Studie Faktoren für eine Variation im Rohmilchpreis für verschiedene CIS Staaten (Armenien, Moldawien und die Ukraine). Es wird ein multi-level Modellierungsansatz verwandt in der Form eines mixed-effects Regressionsmodells unter Berücksichtigung eines möglichen Sampleselektionsfehlers (sample selection bias). The Analyse zeigt die folgenden Strategien für eine mögliche Realisierung eines höheren Rohmilchpreises auf: Konsolidierung, Kooperation und stabile Supply Chain Beziehungen. Während der Verkauf über Marketingkooperative einen signifikanten und positiven Effekt auf den Rohmilchpreis aufweist, ist die Mehrheit der Nichtmitglieder nicht zu einem Beitritt bereit. Die Betriebsgrösse, Vertrauen sowie vertragliche Bindungen zeigen ebenso einen positiven Einfluss auf den vom Milchbauern erzielten Absatzpreis. Entsprechende Politikimplikationen werden formuliert.

Suggested Citation

  • Sauer, Johannes & Gorton, Matthew & White, John, 2011. "Marketing, Cooperatives and Price Heterogeneity: Evidence from the CIS Dairy Sector," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114489, German Association of Agricultural Economists (GEWISOLA).
  • Handle: RePEc:ags:gewi11:114489
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    References listed on IDEAS

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    Cited by:

    1. Sauer, Johannes & Latacz-Lohmann, Uwe, 2012. "Efficient Innovation in Dairy Production - Empirical Findings for Germany," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137386, German Association of Agricultural Economists (GEWISOLA).
    2. Sauer, J. & Latacz-Lohmann, Uwe, 2013. "Efficient Innovation in Dairy Production - Empirical Findings for Germany," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158865, Agricultural Economics Society.
    3. Fuentes Navarro, E. & Faure, G. & Cortijo, E. & De Nys, E. & Bogue, J. & Gómez, C. & Mercado, W. & Gamboa, C. & Le Gal, P.-Y., 2015. "The impacts of differentiated markets on the relationship between dairy processors and smallholder farmers in the Peruvian Andes," Agricultural Systems, Elsevier, vol. 132(C), pages 145-156.
    4. Sultan, Tursinbek & Wolz, Axel, 2012. "Agricultural Cooperative Development in China and Vietnam since Decollectivization: A Multi-Stakeholder Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2).
    5. Hanisch, Markus & Rommel, Jens & Mueller, Malte, 2012. "Variation In Farm Gate Milk Prices And The Cooperative Yardstick Revisited – Panel Evidence From The European Dairy Sectors," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137138, German Association of Agricultural Economists (GEWISOLA).

    More about this item

    Keywords

    Price Heterogeneity; Milk; Cooperatives; Armenia; Moldova; Ukraine; Preisheterogenität; Milch; Kooperative; Armenien; Moldawien; Agribusiness; Agricultural and Food Policy; O13; P32; Q13;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P32 - Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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