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Factors Influencing Farmers’ Selection of a Milk Handler

Published online by Cambridge University Press:  28 April 2015

Richard L. Kilmer ,
Jonq-Ying Lee  and
Dale Carley
Richard L. Kilmer
Affiliation:
Food and Resource Economics Department, University of Florida
Jonq-Ying Lee
Affiliation:
Economic Research Department of the Florida Department of Citrus and in the Food and Resource Economics Department, University of Florida
Dale Carley
Affiliation:
Department of Agricultural and Applied Economics, Georgia Agricultural Experiment Station, Griffin, GA
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Abstract

A structural probit model is estimated to determine the change in the probability of selecting a milk handler. Cooperatives are thought to have lower prices and higher deductions than independent milk handlers and these factors reduce the probability that a farmer will select a cooperative by 0.39 and 0.32. Cooperatives are thought to have better services and an assured market and payment than independent milk handlers and these factors increase the probability that a farmer will select a cooperative by 0.20 and 0.26. This indicates that many cooperative members value monetary characteristics over non-monetary characteristics.

Keywords

cooperativesdairyprocessorsattributesselectionprobit
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 26 , Issue 2 , December 1994 , pp. 443 - 450
Copyright
Copyright © Southern Agricultural Economics Association 1994

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