Relations between Dairy Cooperatives and Other Agrarian Market Participants

Yaroslav Rybak ()
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Yaroslav Rybak: 'Institute of Agrarian Economics' National Scientific Centre, Kyiv, Ukraine

Oblik i finansi, 2016, issue 4, 140-144

Abstract: The most common type of the product produced by households and requiring processing is milk. At the same time, due to price pressure created by numerous intermediaries and lack of direct contacts between producers and processing companies, rural population incurs considerable losses selling milk at a bargain price. Based on experience of other countries, the best way to resolve this problem it to create dairy cooperatives that shall enable to develop tools against artificial lowering of prices on primary commodities, i.e. milk. The purpose of the article is to substantiate ways of cooperation between a dairy cooperative and other agrarian market participants in order to secure interests of its members. It proves importance of cooperation in resolving problems of development of rural areas. It clears up the scheme of relations between a dairy cooperative and other agrarian market participants. It demonstrates that in the context of cooperation the cooperative members have an opportunity to act as dairy sellers after primary processing of milk. The author considers that milk storing up and sale based on cooperation principles creates preconditions for development of animal breeding in the country and offers an alternative to the households in conditions of price pressure created by intermediaries.

Keywords: cooperation; principles of cooperation; dairy cooperative; procurement of milk; processing of raw milk (search for similar items in EconPapers)
JEL-codes: Q13 (search for similar items in EconPapers)
Date: 2016
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