Innovations in Cooperatively Organized Breeding Networks: Analysis of Cluster Structures in Dairy Cattle Breeding in Germany

Abstract

This article examines the innovation activity of cooperatives in dairy cattle breeding and especially the links between profitability, organization, and innovation in the case of Germany. The combination of an explorative approach and multivariate data analysis, of case studies and data from the official estimation of breeding values, is intended to provide a better understanding of the interdependencies. Our cluster analysis suggests a positive effect of network activity and innovation activity on the profitability of breeding companies. Our results imply that network organizations should be supported by the members. The insights on small cooperatives with a high number of shares per member reveal a second way that could combine the benefits of networks and small cooperatives: the establishment of networks and their splitting in strategic groups with a size-related distribution of shares per member.