IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v20y2004i2p143-153.html
   My bibliography  Save this article

The economic efficiency of Irish dairy marketing co-operatives

Author

Listed:
  • G.E. Boyle

    (Department of Economics, National University of Ireland, Maynooth, Maynooth, Co. Kildare, Ireland. E-mail: Gerry.Boyle@May.ie)

Abstract

This paper is concerned with an empirical test for the economic efficiency of Irish dairy marketing co-operatives. The paper develops a test for the pricing behavior of dairy marketing co-operatives based on previous work by R.J. Sexton, B.M. Wilson, and J.J. Wann (1989) and K. Conrad and R. Unger (1987). The proposed test is implemented with data for the Irish dairy-processing sector. The findings suggest that Irish co-operatives behaved “as if” they were profit maximizers, and we could find no evidence that this behavior coincided with postulated co-operative pricing rules. We conclude the paper with a discussion of the economic impact of the EU dairy quota on the Irish dairy-processing sector. We also discuss the emergence of Public Limited Companies (PLCs) as the dominant organizational structure in the Irish dairy sector. [JEL citations: D21; Q13.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 143-153, 2004.

Suggested Citation

  • G.E. Boyle, 2004. "The economic efficiency of Irish dairy marketing co-operatives," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 143-153.
    • Handle: RePEc:wly:agribz:v:20:y:2004:i:2:p:143-153
    DOI: 10.1002/agr.20000
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20000
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.20000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Conrad, Klaus & Unger, Ralph, 1987. "Ex post tests for short-and long-run optimization," Journal of Econometrics, Elsevier, vol. 36(3), pages 339-358, November.
    2. Sexton, Richard J., 1995. "A Perspective on Helmberger and Hoos' Theory of Cooperatives," Journal of Cooperatives, NCERA-210, vol. 10, pages 1-8.
    3. Peter G. Helmberger, 1964. "Cooperative Enterprise as a Structural Dimension of Farm Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(3), pages 603-617.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Alí Colina Rojas & Pilar Zarzosa Espina, 2012. "Comparative productivity analysis between labour-managed firms and conventional capitalist companies in Spain," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(33), pages 11-41, January-J.
    3. Isidoro Guzmán Raja & Narciso Arcas Lario & Domingo García Pérez de Lema, 2006. "La eficiencia técnica como medida de rendimiento de las cooperativas agrarias," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 55, pages 289-311, August.
    4. MCarmen Martínez†Victoria & Narciso Arcas Lario & Mariluz Maté Sánchez Val, 2018. "Financial behavior of cooperatives and investor†owned firms: An empirical analysis of the Spanish fruit and vegetable sector," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 456-471, March.
    5. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    6. Caetano Luiz Beber & Sebastian Lakner & Ioannis Skevas, 2021. "Organizational forms and technical efficiency of the dairy processing industry in Southern Brazil," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-22, December.
    7. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    8. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    9. Senhaji, Arvid, 2008. "Duality theorems summarising some unambiguous qualitative comparative static results for processing cooperatives - The restricted profit function applied," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44374, European Association of Agricultural Economists.
    10. Isidoro GUZMÁN & Narciso ARCAS, 2008. "The Usefulness Of Accounting Information In The Measurement Of Technical Efficiency In Agricultural Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 107-131, March.
    11. Matyja, Małgorzata, 2017. "A Comparative Study of Profitability of Agricultural Cooperatives in Poland and Around the World," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 17(32, Part ), December.
    12. Natalia P. MONTEIRO & Odd Rune STRAUME, 2018. "Are Cooperatives More Productive Than Investor-Owned Firms? Cross-Industry Evidence From Portugal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 377-414, June.
    13. repec:vuw:vuwscr:18942 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. G. E. Boyle, 1998. "A Duality Approach to Testing the Economic Behaviour of Dairy-Marketing Co-operatives: The Case of Ireland," Economics Department Working Paper Series n800798, Department of Economics, National University of Ireland - Maynooth.
    2. Krasachat, W., 2000. "Production Structure and Technical Change in Thai Agriculture, 1972-1994," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123688, Australian Agricultural and Resource Economics Society.
    3. George Mergos & Giannis Karagiannis, 1997. "Sources Of Productivity Change Under Temporary Equilibrium And Application To Greek Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 313-329, January.
    4. Fischer, Martin L. & Hammond, Jerome W. & Dahl, Dale C., 1981. "Impacts Of Farm Supply Cooperatives On Oligopolistic Farm Input Markets: A Theoretical Analysis," Staff Papers 13746, University of Minnesota, Department of Applied Economics.
    5. Cotterill, Ronald W., 1997. "The Performance of Agricultural Marketing Cooperatives in Differentiated Product Markets," Journal of Cooperatives, NCERA-210, vol. 12, pages 1-13.
    6. Sexton, Richard J., 1990. "The Role of Cooperatives in Increasingly Concentrated Agricultural Markets," Cooperatives: Their Importance in the Future Food and Agricultural System - FAMC 1990 Conference 265909, Food and Agricultural Marketing Consortium (FAMC).
    7. Tennbakk, Berit, 1992. "The Case of Cooperative Mixed Duopoly," Institute for Research on Labor and Employment, Working Paper Series qt8wp406w7, Institute of Industrial Relations, UC Berkeley.
    8. Sorensen, Ann-Christin, 2005. "Mixed Markets in the Food Processing Industry," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24741, European Association of Agricultural Economists.
    9. Tina L. Saitone & Richard J. Sexton & Benoît Malan, 2018. "Price premiums, payment delays, and default risk: understanding developing country farmers’ decisions to market through a cooperative or a private trader," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 363-380, May.
    10. Bertrand Koebel, 1998. "Tests of Representative Firm Models: Results for German Manufacturing Industries," Journal of Productivity Analysis, Springer, vol. 10(3), pages 251-270, November.
    11. Liang, Qiao & Hendrikse, George, 2016. "Pooling and the yardstick effect of cooperatives," Agricultural Systems, Elsevier, vol. 143(C), pages 97-105.
    12. Berit Tennbakk, 1995. "Marketing Cooperatives In Mixed Duopolies," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 33-45, January.
    13. Cook, Michael L. & Knutson, Ronald D. & Sporleder, Thomas L., 1981. "Multinational Cooperatives: Their Potential Role in the International Grain Marketing System," 1981 Occasional Paper Series No. 2 197140, International Association of Agricultural Economists.
    14. Youde, James G., 1967. "A Theory of Farm Purchasing Cooperatives," WAEA/ WFEA Conference Archive (1929-1995) 323540, Western Agricultural Economics Association.
    15. Taylor, Timothy G. & Kalaitzandonakes, Nicholas G., 1990. "A Test Of Asset Fixity In Southeastern U.S. Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-7, July.
    16. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
    17. Rogers, Richard T. & Petraglia, Lisa M., 1993. "Agricultural Cooperatives and Market Performance in Food Manufacturing," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 9, pages 1-12.
    18. Ortmann, Gerald F. & King, Robert P., 2007. "Agricultural Cooperatives I: History, Theory and Problems," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-29, March.
    19. Yi, Feng, 2000. "Dynamic energy-demand models: a comparison," Energy Economics, Elsevier, vol. 22(2), pages 285-297, April.
    20. H. Youn Kim & Junsoo Lee, 2001. "Quasi-fixed inputs and long-run equilibrium in production: a cointegration analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(1), pages 41-57.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    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:wly:agribz:v:20:y:2004:i:2:p:143-153. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.