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

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

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.

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Paper provided by German Association of Agricultural Economists (GEWISOLA) in its series 51st Annual Conference, Halle, Germany, September 28-30, 2011 with number 114489.

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Date of creation: 2011
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Handle: RePEc:ags:gewi11:114489
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