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Abstract

Based on a unique micro-survey data from dairy sector in Poland, we provide quantitative evidence documenting farmers’ position towards input suppliers, an issue often overlooked in the literature, which typically focuses on sectors downstream from the farm. We proxy for farmers' bargaining power with their self-reported assessment. This differs from the approach commonly adopted in other studies which normally use for that purpose the farm size. Using an econometric analysis, we show that the latent variable measured by this proxy helps us to explain discounts at which farmers buy feed from input suppliers, in addition to what is explained by the farm size or the quality of farm output.

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