The spatial variation of switching rates in large cooperative membership bases: empirical evidence from the dairy sector

Tim Viergutz, Nana Zubek and Birgit Schulze-Ehlers

European Review of Agricultural Economics, 2020, vol. 47, issue 4, 1438-1472

Abstract: Structural change at both farmer and cooperative levels has significantly altered the vertical relationships between these, with increased switching activities resulting in negative economic impacts on cooperatives. This paper uses spatial panel modelling to identify how prices, cooperative member density and competitors’ processing volume affect member switching rates in a large dairy cooperative. With a unique data set, we find that these local indicators influence local members’ switching decisions. Furthermore, the detected pattern indicates a spatial interdependence of local switching rates, hinting at potential interaction processes among the members, ultimately influencing the occurrence of switching decisions in the membership base. JEL classification: C23, D23, P13, Q13, R32

Keywords: agricultural cooperatives; dairy sector; switching behaviour; member loyalty; spatial price incentives (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/erae/jbz042 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:47:y:2020:i:4:p:1438-1472.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().