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Do producer organizations improve trading practices and negotiation power for dairy farms? Evidence from selected EU countries
Author(s) -
Di Marcantonio Federica,
Havari Enkelejda,
Colen Liesbeth,
Ciaian Pavel
Publication year - 2022
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12730
Subject(s) - negotiation , business , power (physics) , survey data collection , bargaining power , agricultural economics , marketing , economics , microeconomics , political science , statistics , physics , mathematics , quantum mechanics , law
This article analyzes the impact of producer organizations (POs) on dairy farmers’ self‐assessed experiences of unfair trading practices (UTPs) and negotiation power. We employ an endogenous switching regression (ESR) model using cross‐sectional survey data collected in four EU countries: France, Germany, Spain, and Poland. The results show rather mixed impacts of PO membership. PO membership reduces the likelihood of farmers reporting UTPs. On the other hand, PO membership is found to reduce the self‐assessed negotiation power of PO members. The estimated impact of PO membership is found to be largest for smaller farms.