Impact of Cooperative Membership on Technical Efficiency and Marketing Efficiency: The Case of Dairy Buffalo Farmers in the Philippines

Authors

Ceptryl S. Mina, University of the Philippines Los BanosFollow
Agham C. Cuevas, University of the Philippines Los Baños, Philippines

JEL Classification System

Q13, J54, P13

Abstract

Collective action by smallholder farmers through cooperative membership is regarded as one of the approaches to overcome production and marketing inefficiencies. This study investigates the impact of cooperative membership on the technical efficiency (TE) and marketing efficiency (ME) of dairy buffalo farmers in the Philippines. A total of 351 (249 cooperative members and 102 non-cooperative members) randomly selected farmers from Regions II, III, IV-A, and VII were interviewed. Using cross-sectional farm household data of dairy buffalo farmers, technical and marketing efficiencies were estimated. Linear regression with endogenous treatment was performed to determine the impact of cooperative membership on the TE and ME scores of dairy buffalo farmers. Results suggest that compared to those who are non-members, cooperative farmer- members increase their TE and ME scores by 0.105 points and 0.242 points, respectively. Results imply that participation in cooperatives is an effective strategy to improve the productivity and marketing efficiency of dairy buffalo farmers in the country.

Recommended Citation

Mina, Ceptryl S. and Cuevas, Agham C. (2022) "Impact of Cooperative Membership on Technical Efficiency and Marketing Efficiency: The Case of Dairy Buffalo Farmers in the Philippines," DLSU Business & Economics Review: Vol. 31: No. 2, Article 10.
DOI: https://doi.org/10.59588/2243-786X.1193
Available at: https://animorepository.dlsu.edu.ph/ber/vol31/iss2/10