{"title":"Organisation of German livestock production from the bottom up: a new institutional economic analysis of dairy cattle breeding","authors":"J. Höhler, R. Kühl","doi":"10.3920/JCNS2014.0005","DOIUrl":null,"url":null,"abstract":"Cooperatives operate in many different parts of the agri-food chain. Animal breeding, as one of these areas, has not yet been subject to intensive research. In the literature, cooperatives are often claimed to produce a lower quality product than comparable investor-owned firms. Is this the case in dairy cattle breeding as well? In order to address this question, we examine the inter- and intra-organisational coordination and structure of the supply chain for cattle breeding in Germany by means of a property rights model. In a short-term perspective, the profit maximisation of the cooperative member follows the model of perfect competition. In addition, we show the existence of a quality coordination problem in breeding associations in the long run. This problem is presumed to be counteracted by the dual system of price-setting which allows the cooperative to provide incentives to its members.","PeriodicalId":17677,"journal":{"name":"Journal on Chain and Network Science","volume":"169 1","pages":"7-18"},"PeriodicalIF":0.0000,"publicationDate":"2016-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal on Chain and Network Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3920/JCNS2014.0005","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 4
Abstract
Cooperatives operate in many different parts of the agri-food chain. Animal breeding, as one of these areas, has not yet been subject to intensive research. In the literature, cooperatives are often claimed to produce a lower quality product than comparable investor-owned firms. Is this the case in dairy cattle breeding as well? In order to address this question, we examine the inter- and intra-organisational coordination and structure of the supply chain for cattle breeding in Germany by means of a property rights model. In a short-term perspective, the profit maximisation of the cooperative member follows the model of perfect competition. In addition, we show the existence of a quality coordination problem in breeding associations in the long run. This problem is presumed to be counteracted by the dual system of price-setting which allows the cooperative to provide incentives to its members.