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Marketing, co-operatives and price heterogeneity: evidence from the CIS dairy sector

Lookup NU author(s): Professor Matthew Gorton

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Abstract

Drawing on survey data, this article 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 mixed-effects linear regression model. The analysis suggests three main strategies to improve the price received by farmers for their output: consolidation, competition for output, and stable supply chain relationships. In Armenia and Ukraine selling through a marketing cooperative has a significant, positive, albeit modest, effect on farm gate milk prices. In all three countries studied, the size of dairy operations, trust, and contracting also affect positively the prices received by farmers.


Publication metadata

Author(s): Sauer J, Gorton M, White J

Publication type: Article

Journal: Agricultural Economics

Year: 2012

Volume: 43

Issue: 2

Pages: 165-177

Print publication date: 19/12/2011

ISSN (print): 0169-5150

ISSN (electronic): 1574-0862

Publisher: Wiley-Blackwell Publishing, Inc.

URL: http://dx.doi.org/10.1111/j.1574-0862.2011.00574.x

DOI: 10.1111/j.1574-0862.2011.00574.x


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