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Value of Cooperative Benefits to Southern Dairy Farmers

Author

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  • Liebrand, Carolyn Betts
  • Ling, K. Charles

Abstract

This research sought to determine the tradeoff between the benefits of marketing milk through a cooperative and the higher price received by producers selling milk to proprietary handlers. Prices received by farmers selling to cooperatives were compared with the price they could have received from a proprietary handler in the same area. The price differences were examined using various measures. Four groupings of cooperative members with an alternative proprietary handler in their area were used to determine the value of cooperative benefits. The general price difference indicated that, overall, the cooperative members’ mailbox price averaged $0.37 per hundredweight (cwt) lower than the prices paid by proprietary handlers. Those who were satisfied or very satisfied with their cooperative, had lower prices and knew it, received $0.57 per cwt lower mailbox prices.

Suggested Citation

  • Liebrand, Carolyn Betts & Ling, K. Charles, 1991. "Value of Cooperative Benefits to Southern Dairy Farmers," Research Reports 313028, United States Department of Agriculture, Rural Development.
    • Handle: RePEc:ags:urdbrr:313028
    DOI: 10.22004/ag.econ.313028
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    File URL: https://ageconsearch.umn.edu/record/313028/files/co-opRR99.pdf
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    Cited by:

    1. Sayers, Dave M. & Kilmer, Richard L. & Lee, Jonq-Ying & Flambert, Anouk M., 1996. "Satisfaction Evaluation Of Milk Handlers By Southern U.S. Dairy Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-9, December.
    2. Misra, Sukant K. & Carley, Dale H. & Fletcher, Stanley M., 1993. "Factors Influencing Southern Dairy Farmers' Choice Of Milk Handlers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(1), pages 1-11, July.
    3. Hoveid, Oyvind & Hammond, Jerome W., 1994. "Comparative Costs Of Dairy Marketing In Norway And The U.S," Staff Papers 13815, University of Minnesota, Department of Applied Economics.

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