Entry deterring effects of contractual relations in the dairy processing sector

dc.creatorZavelberg, Yvonne
dc.creatorWieck, Christine
dc.creatorHeckelei, Thomas
dc.date2017-04-01T17:16:54Z
dc.date.accessioned2026-07-09T07:23:43Z
dc.descriptionAddressing the competitive imbalances in the dairy sector, the High Level Group of dairy market experts proposed written formal contracts between raw milk producers and processors to improve the bargaining position of producers and to stabilize milk supply. However, exclusive contracts, where a farmer is obliged to deliver his whole production amount to one dairy only, may lead to the opposite effect as they may deter market entry of rival dairies. We develop a theretical model and show that an incumbent dairy can deter entry of a rival dairy when the farmer is risk averse.
dc.identifierdoi:10.22004/ag.econ.156225
dc.identifierhttps://ageconsearch.umn.edu/record/156225/files/Poster2-Zavelberg-Entry_c.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/156225
dc.identifier.urihttp://hdl.handle.net/123456789/587799
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/156225
dc.titleEntry deterring effects of contractual relations in the dairy processing sector
dc.typeText

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