Lookup NU author(s): Professor Matthew Gorton
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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.
Author(s): Sauer J, Gorton M, White J
Publication type: Article
Journal: Agricultural Economics
Print publication date: 19/12/2011
ISSN (print): 0169-5150
ISSN (electronic): 1574-0862
Publisher: Wiley-Blackwell Publishing, Inc.
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