| Title |
Mažų ūkių interesų atstovavimas rinkoje per kooperatyvus: poveikis gamintojų kainai / |
| Translation of Title |
Representing the interests of small farms in the market through cooperatives: effect on producers' price. |
| Authors |
Vitunskienė, Vladzė ; Droždz, Jolanta ; Bendoraitytė, Asta ; Lauraitienė, Lina |
| DOI |
10.15544/mts.2020.57 |
| Full Text |
|
| Is Part of |
Management theory and studies for rural business and infrastructure development.. Kaunas : Vytauto Didžiojo universitetas. 2020, vol. 42, no. 4, p. 561-570.. ISSN 1822-6760. eISSN 2345-0355 |
| Keywords [eng] |
small farms ; cooperatives ; milk processors ; producer price ; competitive yardstick |
| Abstract [eng] |
The study addresses the problem of to what extent and in what way the interests of small farms are represented by cooperatives in the market of agricultural products. The empirical analysis aims to determine the extent of small farms' involvement in formal cooperation and the impact of cooperatives on the prices of their products in Lithuania. The analysis is based on the theory of competitive yardstick, where a cooperative can be considered as a regulator of prices in the market. This theory argues that the existence of a cooperative will force the profit-maximizing companies to behave more competitively in an oligopsony market. When a cooperative offers more favourable prices to farmers because of its classic practice of providing services at cost price, profit-maximizing processing companies try to match the price paid by the cooperative in order to not lose raw material suppliers. The data obtained from the survey carried out in small farms reveal that a small part of small farms in Lithuania sell their agricultural and food products to cooperatives and that even a smaller part of those farms is offered a higher price. The analysis of ZUIKVC PAIS data on the price paid by buyers per kilogram of raw milk, reveals that most cooperatives pay a higher price for small milk producers than the minimum price set by the five largest milk processing companies in Lithuania. About one-fifth of cooperatives (during the winter season) and up to a third of cooperatives (during the summer season) pay a higher price than the maximum price set by the same joint stock companies. |
| Published |
Kaunas : Vytauto Didžiojo universitetas |
| Type |
Journal article |
| Language |
Lithuanian |
| Publication date |
2020 |
| CC license |
|
