Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African 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 transaction costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulati...

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Main Authors: Holloway, G.J., Nicholson, C., Delgado, Christopher L., Staal, Steven J., Ehui, Simeon K.
Format: Journal Article
Language:Inglés
Published: Wiley 2000
Subjects:
Online Access:https://hdl.handle.net/10568/28078
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author Holloway, G.J.
Nicholson, C.
Delgado, Christopher L.
Staal, Steven J.
Ehui, Simeon K.
author_browse Delgado, Christopher L.
Ehui, Simeon K.
Holloway, G.J.
Nicholson, C.
Staal, Steven J.
author_facet Holloway, G.J.
Nicholson, C.
Delgado, Christopher L.
Staal, Steven J.
Ehui, Simeon K.
author_sort Holloway, G.J.
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 transaction costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulating entry into the market, and promoting 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 variables considered are a modern production practice (cross-bred cow use), a traditional production practice (indigenous-cow use), three intellectual-capital-forming variables (experience, education, and 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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publishDate 2000
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spelling CGSpace280782024-11-14T11:38:09Z Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands Holloway, G.J. Nicholson, C. Delgado, Christopher L. Staal, Steven J. Ehui, Simeon K. agroindustrial sector milk markets highlands costs cooperative activities 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 transaction costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulating entry into the market, and promoting 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 variables considered are a modern production practice (cross-bred cow use), a traditional production practice (indigenous-cow use), three intellectual-capital-forming variables (experience, education, and 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. 2000-09 2013-05-06T06:59:52Z 2013-05-06T06:59:52Z Journal Article https://hdl.handle.net/10568/28078 en Limited Access Wiley Holloway, Garth; Nicholson, Charles F.; Delgado, Christopher L.; Staal, Steven; Ehui, Simeon. 2000. Agroindustrialization through institutional innovation: transactions costs, cooperatives and milk-market development in the East African highlands. Agricultural Economics 23(3): 279-288. https://doi.org/10.1016/S0169-5150(00)00089-X
spellingShingle agroindustrial sector
milk
markets
highlands
costs
cooperative activities
dairy farming
collective farms
Holloway, G.J.
Nicholson, C.
Delgado, Christopher L.
Staal, Steven J.
Ehui, Simeon K.
Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands
title Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands
title_full Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands
title_fullStr Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands
title_full_unstemmed Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands
title_short Agroindustrialization through institutional innovation. Transaction costs, cooperatives and milk-market development in the East-African highlands
title_sort agroindustrialization through institutional innovation transaction costs cooperatives and milk market development in the east african highlands
topic agroindustrial sector
milk
markets
highlands
costs
cooperative activities
dairy farming
collective farms
url https://hdl.handle.net/10568/28078
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