COMPETITIVENESS, PRODUCTIVITY, AND EFFICIENCY OF FARMERS’ COOPERATIVES: EVIDENCE FROM THE POLISH DAIRY INDUSTRY

Abstract Cooperatives are key players in the dairy sector both globally and in Poland. Increasing pressure on the economic performance of dairy cooperatives poses questions about the drivers that shape their competitiveness. The aim of the paper is twofold. Firstly, the paper assesses the productivity and efficiency of dairy cooperatives and how these features evolved over time. Secondly, it examines whether and to what extent productivity and efficiency determine the competitiveness of entities under the study. As an empirical illustration, the authors use a dataset on dairy cooperatives operating in Poland, which is an important producer of dairy products in the European Union (EU). The results (obtained using partial productivity and data envelopment analysis) confirm that productivity and efficiency affect the competitiveness of dairy cooperatives. However, a primary contribution is to demonstrate that the relationship between productivity and efficiency versus competitiveness is more complex. Taking into account factors like the qualitative features of market offerings and their influence on consumer behaviur and satisfaction is essential for a thorough assessment of the competitiveness of dairy cooperatives.