Governance structure in the EU milk supply chain

N.B.P. Polman, N. Krol, J.H.M. Peerlings, P. Dupraz, D. Nikolov

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

Governance of the EU’s dairy sector changes will change as a result of the 2008 CAP reform. This chapter focuses on governance structures between dairy farms and milk processors and the role of the exchange of information. Information costs are an important category of transaction costs. To get insight in regional differences within the EU, literature research and interviews are conducted in three case study areas, namely: the Netherlands, Bulgaria, and France. Results show that in these countries both farmers and processors have incentives to form hybrid governance structures with a higher level of control compared to the current structures. Asymmetric information and the exchange of information play an important role in this contractual relation. Most dairy cooperatives have no additional advantage in managing milk quality and milk supply compared to investor owned firms. Chain integration could go a step further in Bulgaria compared to the Netherlands and France given the institutional environment that is not expected to guarantee milk quality and the focus on the export of milk.
Original languageEnglish
Title of host publicationAgricultural and Environmental Informatics, Governance, and Management: Emerging Research Applications
EditorsZ. Andreopoulou, B. Manos, N. Polman, D. Viaggi
PublisherIGI Global
Pages182-195
Number of pages574
ISBN (Print)9781609606220
DOIs
Publication statusPublished - 2011

Fingerprint Dive into the research topics of 'Governance structure in the EU milk supply chain'. Together they form a unique fingerprint.

  • Cite this

    Polman, N. B. P., Krol, N., Peerlings, J. H. M., Dupraz, P., & Nikolov, D. (2011). Governance structure in the EU milk supply chain. In Z. Andreopoulou, B. Manos, N. Polman, & D. Viaggi (Eds.), Agricultural and Environmental Informatics, Governance, and Management: Emerging Research Applications (pp. 182-195). IGI Global. https://doi.org/10.4018/978-1-60960-621-3.ch010