Dairy supply chain modernisation in Poland: What about those not keeping pace?

Abstract

This paper studies the determinants and consequences of heterogeneous market participation among Polish dairy farmers using a unique data set on supply chain characteristics and individuals with different market relationships. It investigates factors that cause households not to participate in the market and then estimates farm orientation effects on revenues, using semi-parametric methods. The key finding is that farms maintaining commercial dairy business were better off than those who ceased milk sales. However, detailed analysis shows that this difference could be attributed to supply chain modernisation and becomes insignificant once subsistence farmers are compared to commercial farms supplying the traditional marketing channel. © Oxford University Press and Foundation for the European Review of Agricultural Economics 2011; all rights reserved. For permissions, please email journals.permissionsoup.com2011 © © Oxford University Press and Foundation for the European Review of Agricultural Economics 2011; all rights reserved. For permissions, please email journals.permissionsoup.com.