*Gary D. Ferrier is an Assistant Professor of Economics at Southern Methodist University, Dallas, Texas 75275 USA; and Philip K. Porter is an Associate Professor of Economics at the University of South Florida, Tampa, Florida 33620 USA.
THE PRODUCTIVE EFFICIENCY OF US MILK PROCESSING CO-OPERATIVES
Article first published online: 5 NOV 2008
Journal of Agricultural Economics
Volume 42, Issue 2, pages 161–173, May 1991
How to Cite
Ferrier, G. D. and Porter, P. K. (1991), THE PRODUCTIVE EFFICIENCY OF US MILK PROCESSING CO-OPERATIVES. Journal of Agricultural Economics, 42: 161–173. doi: 10.1111/j.1477-9552.1991.tb00344.x
- Issue published online: 5 NOV 2008
- Article first published online: 5 NOV 2008
While co-operative organisations fare well in agricultural markets in the United States, this paper argues that co-operatives are theoretically an inherently inferior form of organisation. Empirically, we apply a nonparametric frontier production model to a sample of co-operative and non-co-operative US fluid-milk processors to determine the relative productive efficiency of these two forms of organisation. Our empirical results support the hypothesis that US milk processing co-operatives are less efficient than their proprietary counterparts.