Rafat Soboh is a senior consultant at TERMAC Consultancy & Research. E-mail: firstname.lastname@example.org for correspondence. Alfons Oude Lansink is a professor of Business Economics at Wageningen University. Gert van Dijk holds the NCR-chair Theory and Practice of Cooperation in the Dept of Marketing and Consumer Behaviour at Wageningen University. Thanks are due to two anonymous reviewers and the editor for comments on an earlier draft.
Efficiency of Cooperatives and Investor Owned Firms Revisited
Article first published online: 28 NOV 2011
© 2012 The Agricultural Economics Society
Journal of Agricultural Economics
Volume 63, Issue 1, pages 142–157, February 2012
How to Cite
Soboh, R., Oude Lansink, A. and Van Dijk, G. (2012), Efficiency of Cooperatives and Investor Owned Firms Revisited. Journal of Agricultural Economics, 63: 142–157. doi: 10.1111/j.1477-9552.2011.00324.x
- Issue published online: 9 JAN 2012
- Article first published online: 28 NOV 2011
- (Original submitted April 2010, revision received August 2011, accepted September 2011.)
- data envelopment analysis;
- economical efficiency;
- hyperbolic approach;
The objectives of dairy processing cooperatives differ from those of investor-owned firms (IOFs). However, the literature usually assumes the same performance measures for cooperatives vis-a-vis IOFs. This study compares the performance of dairy cooperatives and IOFs in major European dairy producing countries. A traditional input oriented approach is used and two alternative approaches are used to account for the differential objectives of cooperatives. Cooperatives’ performance differs across the two approaches from being outperformed by IOFs using the input oriented approach to outperforming them when using an approach that is more in line with cooperatives’ objectives.