IDEAS home Printed from https://ideas.repec.org/p/ags/aesc11/108939.html
   My bibliography  Save this paper

Seasonality in the Irish dairy processing industry

Author

Listed:
  • Heinschink, Karin E.
  • Shalloo, Laurence
  • Wallace, Michael T.

Abstract

The dairy landscape in the Republic of Ireland is characterized by pastoral spring-calving systems and a bell-shaped milk production curve. This seasonality at producer level initiates various implications at processor level, such as poor utilization of plant capacity off-peak season, a requirement for seasonal labour management and limited product options in autumn and winter months due to the properties of late-lactation milk. An optimization model was developed to analyze the impact of production seasonality and quota removal on the Irish dairy processing industry in terms of maximum processor gross surplus, the optimum product mix and the marginal values of the milk solids fat, protein and lactose. Processor gross surplus was specified as a function of product sales revenue, less variable costs of collecting and processing raw milk and general overhead (fixed) costs. 5 scenarios with differing milk intake curves were examined whereby a flatter intake curve incurred less monthly variation in the marginal producer milk price, capacity utilization and product mix as well as a higher surplus as compared to more seasonal patterns. However, an isolated consideration of financial indicators at processor level disregards key characteristics of Irish grass-based seasonal milk production and producer-processor interdependencies. It was therefore concluded that a broader modelling approach integrating both the producer and the processor perspectives is desirable for more holistic analysis of sector-wide implications.

Suggested Citation

  • Heinschink, Karin E. & Shalloo, Laurence & Wallace, Michael T., 2011. "Seasonality in the Irish dairy processing industry," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108939, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc11:108939
    DOI: 10.22004/ag.econ.108939
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/108939/files/57heinschink_shaloo_wallaceUPDATE.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.108939?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. David A. Hennessy & Jutta Roosen, 2003. "A Cost‐Based Model of Seasonal Production with Application to Milk Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 285-312, July.
    2. O'Connor, Declan & Keane, Michael & Barnes, Edel, 2008. "Managing Price Risk in a Changing Policy Environment: The Case of the EU Dairy Industry," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48112, European Association of Agricultural Economists.
    3. Deiter, Ronald E. & Bandstra, B. & Freeman, G. & Berger, J. & LaGrange, W., 1988. "Economic Value of Milk Components for Fluid Milk, Cheese, Butter and Nonfat Dry Milk and Responses to Selection," Staff General Research Papers Archive 11082, Iowa State University, Department of Economics.
    4. Kostas Karantininis & Jerker Nilsson, 2007. "Vertical Markets and Cooperative Hierarchies," Springer Books, Springer, number 978-1-4020-5543-0, June.
    Full references (including those not matched with items 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. HEINSCHINK, Karin & SHALLOO, Laurence & WALLACE, Michael, 2012. "Application of an optimisation model for analysing production seasonality in the Irish milk processing sector," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 1(4), pages 1-13, July.
    2. Salazar Idana & Galve Górriz Carmen, 2011. "Determinants of the Differences in the Downstream Vertical Integration and Efficiency Implications in Agricultural Cooperatives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-26, February.
    3. Rousselière, Damien & Joly, Iragäel, 2011. "A propos de la capacité à survivre des coopératives : une étude de la relation entre âge et mortalité des organisations coopératives agricoles françaises," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 92(3).
    4. Liyan Yu & Jerker Nilsson, 2019. "Social Capital and Financial Capital in Chinese Cooperatives," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    5. Hakelius, Karin & Hansson, Helena, 2016. "Members’ attitudes towards cooperatives and their perception of agency problems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), October.
    6. Bijman, W.J.J. & Hendrikse, G.W.J. & van Oijen, A.A.C.J., 2012. "Accommodating Two Worlds in One Organization: Changing Board Models in Agricultural Cooperatives," ERIM Report Series Research in Management ERS-2012-015-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Colleen Honigsberg, 2019. "Hedge Fund Regulation and Fund Governance: Evidence on the Effects of Mandatory Disclosure Rules," Journal of Accounting Research, Wiley Blackwell, vol. 57(4), pages 845-888, September.
    8. Fulton, Murray & Giannakas, Konstantinos, 2012. "The Value of a Norm: Open Membership and the Horizon Problem in Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-18.
    9. Marco Nunes & António Abreu & Célia Saraiva, 2021. "A Model to Manage Cooperative Project Risks to Create Knowledge and Drive Sustainable Business," Sustainability, MDPI, vol. 13(11), pages 1-28, May.
    10. Karin Hakelius & Jerker Nilsson, 2020. "The Logic behind the Internal Governance of Sweden’s Largest Agricultural Cooperatives," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    11. Royer, Jeffrey S., 2012. "Implications of the Cooperative Organizational Form for Vertical Expansion," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-20.
    12. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    13. Liang, Q.X. & Hendrikse, G.W.J., 2012. "Cooperative CEO Identity and Efficient Governance: Member or Outside CEO?," ERIM Report Series Research in Management ERS-2012-019-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    14. Nilsson, Jerker & Ohlsson, Camilla, 2007. "The New Zealand Dairy Cooperatives’ Adaptation to Changing Market Conditions," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 35(1), pages 1-28.
    15. Hennessy, David A. & Lapan, Harvey E., 2004. "Market cycles for a non-storable product under adjustment costs," ISU General Staff Papers 200402010800001203, Iowa State University, Department of Economics.
    16. Joan Carles Membrado-Tena & Jorge Hermosilla-Pla, 2023. "The Precarious Survival of an Ancient Cultural Landscape: The Thousand-Year-Old Olive Trees of the Valencian Maestrat (Spain)," Land, MDPI, vol. 12(7), pages 1-20, July.
    17. Claude Ménard, 2017. "Finding our way in the jungle: insights from organization theory," Post-Print hal-04001137, HAL.
    18. David Hennessy, 2007. "Region marginalization in agriculture, seasonality, dedicated capital, and product development with reference to North Europe dairy sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(2), pages 467-486, June.
    19. Ourania Tremma & Achilleas Kontogeorgos & Philippos Karipidis & Fotios Chatzitheodoridis, 2021. "Mapping the Market Segments for the Consumers of Greek Cooperative Food Products," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    20. Claude Ménard, 2017. "Finding our way in the jungle: insights from organization theory," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04001137, HAL.

    More about this item

    Keywords

    Farm Management; Livestock Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aesc11:108939. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    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.