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. Laurence Harte & John J. O’connell, 2007. "European Dairy Cooperative Strategies: Horizontal Integration Versus Diversity," Springer Books, in: Vertical Markets and Cooperative Hierarchies, chapter 0, pages 195-211, Springer.
    3. 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.
    4. 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.
    5. Kostas Karantininis & Jerker Nilsson, 2007. "Vertical Markets and Cooperative Hierarchies," Springer Books, Springer, number 978-1-4020-5543-0, September.
    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. 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).
    2. Hanisch, Markus & Rommel, Jens & Mueller, Malte, 2012. "Variation In Farm Gate Milk Prices And The Cooperative Yardstick Revisited – Panel Evidence From The European Dairy Sectors," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137138, German Association of Agricultural Economists (GEWISOLA).
    3. Hannah K. Westerholz & Julia Höhler, 2022. "Corporate social responsibility reporting in the food industry—Comparison of co‐operatives and investor‐owned dairies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 211-222, January.
    4. 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.
    5. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    6. 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.
    7. Dionisio Ortiz-Miranda & Olga M Moreno-Pérez & Ana M Moragues-Faus, 2010. "Innovative Strategies of Agricultural Cooperatives in the Framework of the New Rural Development Paradigms: The Case of the Region of Valencia (Spain)," Environment and Planning A, , vol. 42(3), pages 661-677, March.
    8. Marcos Matás, Gustavo & Hernández Espallardo, Miguel & Arcas-Lario, Narciso, 2014. "La disposición a invertir en cooperativas agroalimentarias: el papel de la heterogeneidad y el oportunismo de los socios," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(01), pages 1-19, June.
    9. 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.
    10. Liyan Yu & Jerker Nilsson, 2019. "Social Capital and Financial Capital in Chinese Cooperatives," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    11. Forero, Clemente & Wills, Eduardo & Andonova, Veneta & Orozco, Luz Elena & Pardo, Oscar, 2010. "Violence, insecurity and hybrid organizational forms: A study in conflict-ridden zones in Colombia," Galeras. Working Papers Series 030, Universidad de Los Andes. Facultad de Administración. School of Management.
    12. 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.
    13. Sergaki, P. & Mastronikolos, G. & Kontogeorgos, A. & Semos, A., 2016. "Linking Strategic Orientations with Performance Levels: A Case of Greek Agricultural Cooperatives," Conference Papers 261307, Indian Society of Agricultural Economics.
    14. 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.
    15. Sebhatu, Kifle T. & Gezahegn, Tafesse W. & Berhanu, Tekeste & Maertens, Miet & Passel, Steven Van & D'Haese, Marijke, 2021. "Exploring variability across cooperatives: economic performance of agricultural cooperatives in northern Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    16. Riganelli, Chiara & Marchini, Andrea & Polenzani, Bianca & Martino, Gaetano, 2018. "Strategies of Diversification and Brand Extension in SME Food Companies: Which Factors Might Affect the Impact of Consumers’ Preferences," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(2), March.
    17. 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.
    18. 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.
    19. 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.
    20. 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.

    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.