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A Descriptive Analysis of Milk Pricing Attribute Values for Cooperative and Independent Milk Handlers in New York State

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  • Munch, Daniel M.
  • Schmit, Todd M.
  • Severson, Roberta M.

Abstract

Dairy cooperatives market 85% of the milk produced by U.S. dairy farmers, although independent handlers remain relevant in many areas. Using handler report data from New York State, we provide a comparative financial analysis of pricing behavior by form of handler organization. Cooperative handlers provided price advantages to producers in terms of higher overall premiums and lower hauling costs; however, the net milk price advantage was only $0.20/cwt (about 1 percent) when all pricing components were considered and suggesting the value of cooperative ownership in dairy marketing includes other nonfinancial performance measures to substantiate such a large market share.

Suggested Citation

  • Munch, Daniel M. & Schmit, Todd M. & Severson, Roberta M., 2020. "A Descriptive Analysis of Milk Pricing Attribute Values for Cooperative and Independent Milk Handlers in New York State," Journal of Cooperatives, NCERA-210, vol. 35.
    • Handle: RePEc:ags:jlcoop:338669
    DOI: 10.22004/ag.econ.338669
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    References listed on IDEAS

    as
    1. Jensen, Kimberly L., 1990. "Factors Associated with the Selection of Cooperative vs. Proprietary Handlers of Milk in Tennessee," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5, pages 1-9.
    2. Bravo-Ureta, Boris E. & Lee, Tsoung-Chao, 1988. "Socioeconomic and Technical Characteristics of New England Dairy Cooperative Members and Nonmembers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3, pages 1-16.
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    Agribusiness; Industrial Organization;

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