Economics Research

Analysis of the Economic Performance of the Milk Processing Cooperatives

Document Type : Research Paper

Authors

Hamid Amadeh
Mohammad Asiaee
Majid Koopahi
Abstract
    In economic studies of cooperatives, little attention has been paid to the different economic behaviors of cooperative and profit maximizer firms.There is a rich theoretical literature of cooperation theory  which indicates that if the society wishes to catch the benefits of the cooperation, the coops must ignore profit maximizing behavior .Instead,they must attempt  to maximize their own and their members' welfare.In this study, the economic behavior of the Iran's small cheese coops were analysed.For this purpose ,a panel data of 7 coops for 1995-2003 period were used.Results showed that these coops were profit maximizer firms and not cooperative ones, and hence the producers who deliver their raw  milk to them, and consumers of their produced cheese didn't make benefit from the advantages of a real cooperation behavior in milk processing industry. Besides results show that analysed coops have not full efficiency in applying fuel and raw milk factors.
1. Atkinson, S. E. and R. Halvorsen. "A Test of Relative and Absolute price Efficiency in Regulated Utilites". The Rev. Econ . Stat. 62, (1980).
 
2. Baltagi, B, H. Econometric Analysis of Panel Data. John Wiley and Sons pub. 1st Edition, 1995.
 
3. Baltagi, B. H. Econometrics. Springer pub. 2nd Revised Edition., 1999.
 
4. Enke, S. "Consumer Cooperatives and Economic Efficiency"., Amer. Econ. Rev. 35. (1945).
 
5. Helmberger, P. G. "Cooperative Enterprise as a Structural Dimension of Farm Markets"., Journal of Farm Economics, 46, (1964).
 
6. Helmberger, P. G. and S. Hoos., "Cooperative Enterprise and Organization Theory"., Journal of Farm Economics, 44, (1962).
 
7. Lopez, R. A. and T. H. Spreen.,"Coordination Strategies and Non-Member Trade in Processing Cooperatives".,  J. of Agri. Econ, 36, (SEP 1985).
 
8. Lau, L. J. and P. A. Yotopoulos., "A Test for Relative Efficiency and ..."., Am. Econ. Rev. 61, (1971).
 
9. Lau, L. J. and P. A. Yotopoulos., "Profit, Supply and Factor Demand Functions"., Aj AE. 54, (1972).
 
10. Ohm, H. "Member Behavior and Optimal Pricing in Marketing Cooperatives".,  J. of Farm Economics, 38, (1956).
 
11. Sexton, R. J. "Perspectives on the Development of the Economic Theory of Cooperatives"., Can. J. of Agri. Econ, 32, (1984).
 
12. Sexton, R. J, B. M. Wilson, and J. J. Wann. "Some Test of the Economic Theory of Cooperatives: Methodology and Application to Cotton Ginning"., West. J. Ag. Econ. 14(1). (1989).
 
13. Sidhu, S. S. "Relative Efficiency in Wheat Production in the Indian Punjab"., Am. Econ. Rev. 64, (1974).
 
14. Yotopoulos, P. A. and L. J. Lau. "A Test for Relative Economic Efficiency: Some Further Results"., Am. Econ. Rev. 63, (1973).
Economics Research
Volume 7, Issue 24 - Serial Number 1
Spring 2007
Pages 187-209

  • Receive Date 26 April 2016

Home

Editorial Board

Guide for Authors

Submit Manuscript

Contact Us