Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands

Some small-holders are able to generate reliable and substantial income flows through small-scale dairy production for the local market; for others, a set of unique transactions costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulat...

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Main Authors: Holloway, Garth, Nicholson, Charles F., Delgado, Christopher L., Staal, Steven, Ehui, Simeon
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 1999
Subjects:
Online Access:https://hdl.handle.net/10568/161269
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author Holloway, Garth
Nicholson, Charles F.
Delgado, Christopher L.
Staal, Steven
Ehui, Simeon
author_browse Delgado, Christopher L.
Ehui, Simeon
Holloway, Garth
Nicholson, Charles F.
Staal, Steven
author_facet Holloway, Garth
Nicholson, Charles F.
Delgado, Christopher L.
Staal, Steven
Ehui, Simeon
author_sort Holloway, Garth
collection Repository of Agricultural Research Outputs (CGSpace)
description Some small-holders are able to generate reliable and substantial income flows through small-scale dairy production for the local market; for others, a set of unique transactions costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulating entry into the market, and precipitating growth in rural communities. Trends in cooperative organization in East-African dairy are evaluated. Empirical work focuses on alternative techniques for effecting participation among a representative sample of peri-urban milk producers in the Ethiopian highlands. The techniques considered are a modern production practice (cross-bred cow use), a traditional production practice (indigenous-cow use), three intellectual-capital-forming variables (experience, education, extension), and the provision of infrastructure (as measured by time to transport milk to market). A Tobit analysis of marketable surplus generates precise estimates of non-participants’ ‘distances’ to market and their reservation levels of the covariates—measures of the inputs necessary to sustain and enhance the market. Policy implications focus on the availability of cross-bred stock and the level of market infrastructure, both of which have marked effects on participation, the velocity of transactions in the local community and, inevitably, the social returns to agroindustrialization.
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spelling CGSpace1612692025-11-06T07:22:02Z Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands Holloway, Garth Nicholson, Charles F. Delgado, Christopher L. Staal, Steven Ehui, Simeon dairy farming collective farms Some small-holders are able to generate reliable and substantial income flows through small-scale dairy production for the local market; for others, a set of unique transactions costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulating entry into the market, and precipitating growth in rural communities. Trends in cooperative organization in East-African dairy are evaluated. Empirical work focuses on alternative techniques for effecting participation among a representative sample of peri-urban milk producers in the Ethiopian highlands. The techniques considered are a modern production practice (cross-bred cow use), a traditional production practice (indigenous-cow use), three intellectual-capital-forming variables (experience, education, extension), and the provision of infrastructure (as measured by time to transport milk to market). A Tobit analysis of marketable surplus generates precise estimates of non-participants’ ‘distances’ to market and their reservation levels of the covariates—measures of the inputs necessary to sustain and enhance the market. Policy implications focus on the availability of cross-bred stock and the level of market infrastructure, both of which have marked effects on participation, the velocity of transactions in the local community and, inevitably, the social returns to agroindustrialization. 1999 2024-11-21T09:54:33Z 2024-11-21T09:54:33Z Working Paper https://hdl.handle.net/10568/161269 en Open Access application/pdf International Food Policy Research Institute Holloway, Garth; Nicholson, Charles F.; Delgado, Christopher L.; Staal, Steven; Ehui, Simeon. 1999. Agroindustrialization through institutional innovation;transactions costs, cooperatives and milk-market development in the Ethiopian highlands. MTID Discussion Paper 35. https://hdl.handle.net/10568/161269
spellingShingle dairy farming
collective farms
Holloway, Garth
Nicholson, Charles F.
Delgado, Christopher L.
Staal, Steven
Ehui, Simeon
Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands
title Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands
title_full Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands
title_fullStr Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands
title_full_unstemmed Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands
title_short Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the Ethiopian highlands
title_sort agroindustrialization through institutional innovation transactions costs cooperatives and milk market development in the ethiopian highlands
topic dairy farming
collective farms
url https://hdl.handle.net/10568/161269
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