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Performance Of Cooperatives And Investor Owned Firms In The Dairy Industry

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  • Parliament, Claudia
  • Lerman, Zvi
  • Fulton, Joan R.

Abstract

A comparison of regional dairy cooperatives with investor owned dairy firms for the period 1976-1987 produced empirical findings that are at variance with the hypotheses suggested by the theory of cooperatives. The cooperatives in the sample performed significantly better than the IOFs when compared by leverage, asset turnover, and coverage ratios, while the rate of return to equity was not found to be significantly different. Techniques are also proposed for valuing the nonmarket aspects of cooperatives that are not captured by financial ratio analysis.

Suggested Citation

  • Parliament, Claudia & Lerman, Zvi & Fulton, Joan R., 1989. "Performance Of Cooperatives And Investor Owned Firms In The Dairy Industry," Staff Papers 14245, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:14245
    DOI: 10.22004/ag.econ.14245
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    References listed on IDEAS

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    8. Cobia, David W. & Royer, Jeffrey S. & Wissman, Roger A. & Smith, Dennis Paul & Davidson, Donald R. & Lurya, Stephen D. & Mather, J. Warren & Brown, Phillip F. & Krueger, Kenneth P., 1982. "Equity Redemption: Issues and Alternatives for Farmer Cooperatives," Research Reports 180969, United States Department of Agriculture, Rural Development.
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