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The evolution of the Dutch dairy industry and the rise of cooperatives.A research note

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  • Koen Frenken

Abstract

Economic historians tend to explain the rise of the cooperative form in agriculture from the advantage of cooperative over private factories in reducing transaction costs with suppliers. This study provides a first test of this thesis using data on 1130 dairy factories in The Netherlands. Indeed, we find that cooperative factories performed significantly better than private factories. The persistence of private factories in certain regions can be explained by first-mover advantages.

Suggested Citation

  • Koen Frenken, 2013. "The evolution of the Dutch dairy industry and the rise of cooperatives.A research note," Working Papers 13-07, Eindhoven Center for Innovation Studies, revised Aug 2013.
    • Handle: RePEc:ein:tuecis:1307
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    References listed on IDEAS

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    1. Henriksen, Ingrid, 1999. "Avoiding lock-in: Cooperative creameries in Denmark, 1882–1903," European Review of Economic History, Cambridge University Press, vol. 3(1), pages 57-78, April.
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    Cited by:

    1. Jos Bijman, 2018. "Exploring the Sustainability of the Cooperative Model in Dairy: The Case of the Netherlands," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    2. Damien Rousselière, 2019. "A Flexible Approach to Age Dependence in Organizational Mortality: Comparing the Life Duration for Cooperative and Non-Cooperative Enterprises Using a Bayesian Generalized Additive Discrete Time Survi," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 829-855, December.
    3. Charlebois, Sylvain, 2016. "Policy-change Triggered Environmental Uncertainty in a Dairy Cooperative: The Case of Mila in South Tyrol," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 7(3), pages 1-13, July.
    4. Jasper Grashuis, 2021. "A price premium for the farmer‐owned label? A choice experiment with milk consumers in the Netherlands," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 749-763, October.

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