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Producer organizations and members performance in hog production

Author

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  • Sabine Duvaleix-Treguer

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Carl Gaigné

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST, CREATE, Centre de Recherche en économie de l'Environnement, de l'Agroalimentaire, des Transports et de l'Énergie - ULaval - Université Laval [Québec])

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

  • Sabine Duvaleix-Treguer & Carl Gaigné, 2015. "Producer organizations and members performance in hog production," Post-Print hal-02794642, HAL.
    • Handle: RePEc:hal:journl:hal-02794642
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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 Research Reports JRC108059, Joint Research Centre.

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