Management Theory and Studies for Rural Business and Infrastructure Development, Volume 22

Transportation systems of raw milk in cooperatives

Audrius Gargasas, Aiste Bakaitė, Julius Ramanauskas

Abstract

There are many milk producers in dairy sector and lots of them are successfully organizing
in cooperatives. The nature of activity of these cooperatives is very different. Some of them
only representing their members in negotiating with processors milk procurement prices, the others
organizing of members produced milk gathering and conveyance network. Questionnaire research
shows, that these cooperatives members, which owns transport for milk conveyance, as
biggest advantage of this system view less dependence from processors either additional incomes
and competitive advantage. But the problems they face are shortfall of investment funds to obtain
transport, route planning and effective transport exploitation. Cooperatives, which haven’t
own transport, are not sloped to invest to farm development and feel less processors influence.
Besides, activity of landowners is restricted by milk processors which regulate the price
and quantity of raw milk unilaterally. Cooperatives of milk producers could be significant member
of dairy market and counterweight for processors if they accomplish member’s raw milk
gathering and conveyance network. Dairy farmers should form cooperatives more active, use the
provision of support and invest for development of cooperatives and their own farms.

Keyword(s): cooperative, milk producer, milk processor, transportation


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.