Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain

Several studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature also does not provide insights into the technical efficiency of these entities with respect to different regions’ milk production capacity. Therefore, this paper aims to: (1) evaluate and compare the technical efficiency of cooperative and non-cooperative dairies in Poland, and (2) examine dairies’ technical efficiency due to spatial disparities in milk production potential. We use data envelopment analysis (DEA) to investigate the technical efficiency of 108 dairies in Poland for the year 2019. The milk production capacity of provinces is examined by applying the zero unitarization method. The results show that when assuming constant returns to scale (CRS), dairy cooperatives are less technically efficient than non-cooperatives, whereas when assuming variable returns to scale (VRS), these differences are not statistically significant. For inefficient dairies, we observe the greatest potential for improvement in labor costs and depreciation. Both cooperatives and non-cooperatives operate mostly under decreasing returns to scale. Thus, the potential for enhancing the technical efficiency of dairies through the consolidation process seems to be exploited. Our findings reveal that the technical efficiency of dairies in Poland is not differentiated by regional milk production potential.

Information Sourcing and Managing Behavior of Dairy Entrepreneurs of Kerala

The study was conducted in Kerala state to comprehend the information sourcing and managing behavior of dairy entrepreneurs; by examining the frequency of contact with the information sources, available sources of training, ICT utilization, market orientation and scientific orientation. The data was collected by survey using a structured schedule and the results were exhibited in tables. The overall frequency of contact was found to be medium for majority of the dairy entrepreneurs; the results exhibiting a similar trend also in market orientation. The preferred training centers by most of the entrepreneurs were dairy cooperatives due to their proximity and flexibility. The modern day information tools like android mobiles and television were the preferred ICT sources. Scientific orientation was higher for majority of the dairy entrepreneurs signifying an encouraging impact of the information management. The multiple linear regression model showed that while experience was negatively correlated; annual income, overall frequency of contact and market orientation were positively correlated and significant with scientific orientation. Among the three geographic regions, highland entrepreneurs had high scientific orientation. Nevertheless, overall results suggest the need for extension support and training interventions to improve the information sourcing and managing behavior of dairy entrepreneurs of the state.

Accessing value-added market through cooperatives: a case study of Sitajakhala Dugdha Utpadak Samabai Samiti Ltd., India

PurposeMember-owned business organizations, such as cooperatives, are engaged in various economic activities that touch our everyday lives. Sitajakhala Dugdha Utpadak Samabai Samiti Limited (Sitajakhala Dairy Producers Cooperative Society Limited) is a successful cooperative society in the northeastern region of India. The purpose of this case study is to illustrate how the cooperative manages its production and supply chain of milk and milk products and highlights several issues that the cooperative encountered in the recent past and how those issues were managed. This case also illustrates how an agribusiness cooperative has been growing over the years, including expansion of business and the creation of a brand image, as well as benefiting its members and their communities.Design/methodology/approachThe authors used a case study approach where they went for in-person interviews of Sitajakhala's executive members and office staff; in addition, the authors were given access to Sitajakhala's marketing and financial records as well as its annual reports and vision documents.FindingsSitajakhala Co-op provides a platform where individual dairy farmers (most of who are small farmers and many of them are illiterate) can unite to bargain for higher prices for their milk. Due to its member-oriented business strategy, Sitajakhala Co-op has been growing well with active support of its members. Consistent quality control and marked improvements in labeling, bottling and packaging of milk and milk products has helped the cooperative to establish itself as a leader in dairy products supplier in Assam among bulk buyers as well as individual consumers. Sitajakhala cooperative also provides dairy farming related services to its members for free of charge to improve milk production and quality. One of the shortcomings of the cooperative is underutilization of its modern milk processing plant which needs to be addressed by the management in earnest.Research limitations/implicationsThis case study is based on information from one dairy cooperative in Assam, India; thus, the findings of this case may not translate into other dairy cooperatives in India or elsewhere. Nonetheless, cooperative practitioners may find the findings useful from a management perspective.Social implicationsSitajakhala Co-op management was keenly aware of the non-dairy related needs of the community it serves. Some of such services include free medical ambulance service for its members, supporting secondary education through providing merit and need-based scholarships and funding physical improvements to a local high school and a local college. In addition, the cooperative regularly provides funding to local sports and cultural events and local social institutions which have positive impact on the larger community. Sitajakhala cooperative has been providing employment to the local youth in the Morigaon area and plans on continuing to do so.Originality/valueTo the best of our knowledge, this is the first case study focusing on the management and operations of a dairy cooperative in the northeastern part of India. Knowledge gained from such study is expected to benefit not only Sitajakhala cooperative but also other dairy cooperatives in a similar situation. This case study will also benefit senior undergraduate and/or graduate students specializing in agricultural economics/agribusiness and can also be used for executive training for the management of academic institutions and food companies.

Challenges to Overcome by the Members of the NARMUL Dairy Cooperative

Dairy cooperatives have played an important role in improving the economy of small milk producers’ households in different regions of India. Telangana is one amongst them, which is predominantly an agricultural state with an excellent potential for milk production. The study was conducted to analyze the constraints faced by dairy farmers of Yadadri- Bhongir district of Telangana. The study data was collected during March-April 2021 from 90 milk producers of NARMUL co-operative in Yadadri-Bhuvangiri district of the state. Low procurement price of milk, Lack of disease control programs, No Bonus, Lack of milk testing & animal screening facilities, Irregular visits of Veterinary staff were considered as the most serious constraints where as, Unavailability of first aid services and lack of sufficient supply of vaccines to the animals, Non availability of loan facilities, Lack of artificial insemination (A.I.) facilities in/around the village, Inadequate supply of feed and mineral mixture were considered as the least serious constraints.

Evolution of Dairy Cooperatives in Karnataka: A Special Focus on Women’s Dairy Cooperatives

The present research is mainly based on secondary data and aimed to study dairy cooperatives’ evolution and especially those involving women in Karnataka. The indicators used in study are growth rate and percentages. In India and Karnataka, the analysis indicated that growth in milk production has increased significantly in the past 3 decades and overall, except during 2000-01 to 2009-10 period for Karnataka. As of July, 2020 there were 14 Milk Unions covering all the districts of the state with 14682 Dairy Cooperatives functioning and 25.30 lakh milk producers. Bengaluru and Kolar milk unions are larger unions in the state contributing around 25 per cent to total dairy cooperatives and milk producers in Karnataka, while contributing around 34 per cent to average milk procurement. The wide spread establishment of WDCs was possible in Karnataka through STEP scheme which was implemented by KMF with the support of Government of Karnataka. The total number of WDCs registered in Karnataka is of 4494 and currently functioning ones among them is 4046. Around 60 per cent of WDCs are set up through STEP in Karnataka over the years.

METHODOLOGY OF COST RECORDING AND ACCOUNTING IN DAIRY COOPERATIVES

The purpose of the research is to present the theoretical and practical aspects of determining the unit cost of producing dairy products in what is defined as a "typical" dairy cooperative. The Euclideanand urban distance method was used to determine a typical object with n = 88 dairy cooperatives – the following set of variables was defined, which are common to all cooperatives and reflect the sizeand specificity of cooperative units on the milk market in Poland. The selected cooperative provides a procedure for calculating the unit costs of dairy products on the basis of a detailed case study. Thefull cost account used in cooperatives does not provide cost information for management decisions.Indirect cost accounting using contractual factors does not provide reliable cost data. An important issue in determining the coefficients is the adoption of a measure which reflects the actualrelationship between cost and cost carrier, a product which, in the case of dairy products, may be difficult. It would be appropriate to attempt to introduce a variable cost account in dairy cooperativesin order to avoid the contractual assignment of indirect costs to products. The main problem highlighted by the authors is the lack of an adequate information system for the cost accounting indairy cooperatives. The implementation of such solutions would allow managers of a dairy cooperative to make appropriate (short-term) decisions in terms of developing an assortmentstructure based on data e.g. on profitability at the level of individual products.

Cooperative Partnership with Milk Companies Based on Codex Alimentarius in Realizing Food Sovereignty in Indonesia

<p>Government of Indonesia has allocated food sovereignty’s budget through the 2016 state budget (APBN) which places the cooperation of Ministry of Cooperatives and SME’s with Ministry of Agriculture, when developing the farmer cooperatives’ corporatization. Global food sovereignty is contested by: (1) civil society in which one of the actors is cooperatives, (2) the government which is part of the Food and Agriculture Organization of the United Nations (UN FAO), and (3) the global private sector which is part of the World Trade Organization (WTO).This paper analyzes Karya Nugraha Jaya Multipurpose Cooperative in Kuningan (KSU KNJ)’s partnership which supplies 90% of good quality raw milk from its members to PT Ultra Jaya Milk (54%) and Diamond Milk (36%), two business actors who has implemented the WTO’s and FAO’s Codex Alimentarius for the sake of fulfilling food safety standards for worldwide food trade. These international institutions forced to revoke the word ‘mandatory’ and the article on ‘sanctions’ from Indonesia’s Ministry of Agriculture’s regulation if business actors do not enter into partnerships with farmers &amp; cooperatives. This study shows that KSU KNJ, which is one of 9,703 Indonesian agricultural cooperatives, is an aggregator of the milk produced by its members. A strategy is needed to increase the partnership of dairy cooperatives with private companies. The possible seven strategies are: (1) Wait and see first group; (2) Driving group; (3) Chain integration group, (4) Cooperation specialist group; (5) Free specialist group; (6) Diversification cooperation group; and (7) Free cooperation group.</p><p>Keywords: Food sovereignty, codex alimentarius, dairy, cooperatives, partnership</p><p> </p><p><strong>Abstrak</strong></p><p><strong>KEMITRAAN KOPERASI DENGAN PERUSAHAAN SUSU BERDASARKAN </strong><strong>CODEX ALIMENTARIUS DALAM MEWUJUDKAN KEDAULATAN </strong><strong>PANGAN DI INDONESIA</strong></p><p>Pada tahun 2016 Pemerintah Indonesia telah mengalokasikan anggaran kedaulatan pangan melalui APBN yang memposisikan Kemenkop UKM harus bekerjasama dengan Kementerian Pertanian dalam mengembangkan korporatisasi koperasi petani. Kedaulatan pangan telah menjadi isu global karena diperebutkan oleh tiga aktor: (1) Masyarakat sipil yang mana salah satu aktornya adalah koperasi, (2) Pemerintah yang tergabung pada Organisasi Pangan dan Pertanian PBB (UN FAO), dan (3) Swasta global yang tergabung dalam Organisasi Perdagangan Dunia (WTO). Tulisan ini menelaah dan menganalisis kemitraan pada Koperasi Serba Usaha Karya Nugraha Jaya (KSU KNJ) di Kuningan yang memasok 90% susu segar berkualitas dari para anggotanya ke PT Ultra Jaya Milk (54%) dan Diamond Milk (36%), dua pelaku usaha yang sudah menerapkan Codex Alimentarius versi WTO dan FAO demi memenuhi standar keamanan pangan untuk perdagangan dunia. Institusi internasional ini menjadi salah satu acuan bagi Indonesia dalam membuat Peraturan Menteri Pertanian No 33 tahun 2018 yang mencabut kata ‘wajib’ dan pasal ‘sanksi’ jika pelaku usaha tidak melakukan kemitraan dalam dua aturan sebelumnya. Hasil telaah dan analisis menunjukan KSU KNJ yang merupakan salah satu dari 9.703 koperasi pertanian Indonesia telah berperan sebagai agregator produksi susu anggotanya. Diperlukan strategi guna meningkatkan kemitraan koperasi susu dengan perusahaan swasta. Terdapat tujuh strategi tersebut mencakup: (1) Kelompok menunggu dan lihat-lihat dahulu; (2) Kelompok penggerak; (3) Kelompok pengintegrasi rantai, (4) Kelompok spesialis kerja sama; (5) Kelompok spesialis bebas; (6) Kelompok kerja sama diversifikasi; dan (7) Kelompok kerja sama bebas.</p><p>Kata kunci: Kedaulatan pangan, codex alimentarius, susu, koperasi, kemitraan</p>

A DYNAMIC AND STATIC VIEW OF THE FINANCIAL SECURITY OF DAIRY COOPERATIVES

The aim of the research was to identify and assess the dynamic and static dimension of the financial security of dairy cooperatives in the area of liquidity. Cooperatives with a higher equity value than average and with a cash flow statement were purposively selected. The final research sample included 20 dairy cooperatives. The research period covered the period from 2017 to 2019. Statistically speaking, dairy cooperatives are generally financially secure as a result of the specific nature of their business, which is geared towards benefiting their members – milk suppliers – through timely payments for raw material delivered. Most of the entities studied were characterised by over-liquidity in static terms, which should be assessed favourably from the perspective of the cooperative form of management. In dynamic terms, however, not all entities were characterised by favourable values of cash productivity ratios. Static liquidity measures do not provide a complete and transparent picture of the financial security of dairy cooperatives and should be considered both static and dynamic. Only an interpretation of the two dimensions of liquidity indicators will allow an effective interpretation of this issue in relation to dairy cooperatives. Moreover, when assessing liquidity, account should be taken of the specificities of cooperative management activities, where static measures in this area are above literature standards, while dynamic liquidity measures do not always reach satisfactory volumes.