Collaboration in the Czech Dairy Chain
No 4/2013, December
In the context of the market deregulation process the EU dairy sector has been reinforced by the Milk Package, comprising a series of measures addressed to producers' organizations to encourage them to participate in the dairy chain conduct. The aim of the paper is to explore if milk producers organizations in the Czech Republic dispose with characteristics to become supporting element of the sector's stability and what a potential for the farm economics they may have. The characteristics of a spectrum of organizations are examined and confronted with the business environment using the concept of dairy cooperative model. Most of organisations showed inbuilt transactions related mechanisms which might carry the regulative function, however instead of support they disrupt the chain by bargaining. It is argued for the change of their strategies with a focus on capital involvement in milk processing. Their rational functioning might improve dairy farms profitability.
Milk, producers' organizations, strategies, bargaining, value added, vertical integration, farm profitability.