Publication:

Marketing, co-operatives and price heterogeneity: evidence from the CIS dairy sector (2012)

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

    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.

    • Type of Article: Research article
    • Date: 19-12-2011
    • Journal: Agricultural Economics
    • Volume: 43
    • Issue: 2
    • Pages: 165-177
    • Publisher: Wiley-Blackwell Publishing, Inc.
    • Publication type: Article
    • Bibliographic status: Published

    Keywords: Price heterogeneity;Milk;Cooperatives;Armenia;Moldova;Ukraine

    Staff

    Dr Matthew Gorton
    Senior Lecturer