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Abstract
Drawing on survey data, this paper identifies the determinants of variations in farm gate
milk prices for three CIS countries (Armenia, Moldova and Ukraine). We apply a multi-level
modeling approach, specifically a bootstrapped and selectivity bias corrected mixed-effects
linear regression model. The analysis suggests three main strategies for farmers to
improve the price received for their output: consolidation, cooperation and stable supply
chain relationships. While selling through a marketing cooperative has a significant and
positive effect on farm gate milk prices, the majority of non-members are reluctant to join.
The size of dairy operations, trust and contracting also impact positively on the prices
received by farmers. Policy implications are drawn.