The effects of the participation in producer organisations on the performance of dairy farmers in the Czech Republic and future challenges

https://doi.org/10.17221/2/2020-AGRICECONCitation:

Boskova I., Ahado S., Ratinger T. (2020): The effects of the participation in producer organisations on the performance of dairy farmers in the Czech Republic and future challenges. Agric. Econ. – Czech, 66: 345–354.

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This study focuses on milk producer organisations (MPOs) acting in the Czech Republic, examines in counterfactual design economic benefits of MPO members, explores the expectations and satisfaction of farmers with services provided by MPOs and discusses changes in MPO strategies in response to market developments. The economic benefits were evaluated econometrically using a direct matching method, while for the assessment of MPOs services and strategies we designed a survey among the members which was complemented by interviews with managers of the three largest MPOs. The results confirm positive economic benefits for farms and rather high farmers’ expectations and also satisfaction with the MPOs activities. However, while farmers, put most emphasis on common roles as price bargaining and securing sales, the MPO managers show future-looking approaches to strategies referring to consumer environmental and health concerns or vertical collaboration along the value chain.

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