IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/200201010800001367.html
   My bibliography  Save this paper

Expected returns from starting a large scale closed dairy cooperative under price and biological uncertainties

Author

Listed:
  • Dreischmeier, Marty James

Abstract

The objective of this paper is to determine if it is economically feasible to form a large-scale closed dairy cooperative in the upper Midwest. Simulations were performed for both price and biological variables to calculate the cash flows for a large-scale closed dairy cooperative over the 1st 10 years of operation. The cash flows were calculated using a farm level financial model that was developed to incorporate the biologically driven production process into the cash flow model. The distribution of returns for the cooperative members were estimated and reported for different starting equity levels and different production growth paths. In addition, the probability of the cooperative failing was estimated. A logit regression model was used to estimate the impact of key variables on the probability of failure for the closed dairy cooperative. Based on the results of this research, forming a large-scale closed dairy cooperative in the upper Midwest appears to be a feasible approach for adding value to corn produced by farmers in the upper Midwest.

Suggested Citation

  • Dreischmeier, Marty James, 2002. "Expected returns from starting a large scale closed dairy cooperative under price and biological uncertainties," ISU General Staff Papers 200201010800001367, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200201010800001367
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/765205bb-ec92-4705-85fb-1071afd621f0/content
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:200201010800001367. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.