Factors influencing membership of dairy cooperatives: Evidence from dairy farmers in Thailand

Abstract

• Dairy farming experience positively influences dairy farmers’ membership of the cooperatives. • Education positively influences dairy farmers’ membership of the cooperatives. • Distance to the milk collecting centers positively influences dairy farmers’ membership of the cooperatives. • Herd size positively influences dairy farmers’ membership of the cooperatives. • Monthly payment period negatively influences dairy farmers’ membership of the cooperatives. This study assessed the factors determining farmers’ membership of dairy cooperatives in Thailand using primary data acquired from 385 randomly selected dairy farmers in central and north-eastern regions of Thailand. Two types of farmers were surveyed: members of dairy cooperatives and members of private organizations representing the two key marketing channels. The results of the binary logit regression model showed that educational level, dairy farming experience, herd size and distance to the milk collecting centres had positive significant influence whereas the square of the herd size and monthly payment period had negative significant influence on farmers’ membership of the cooperatives. The policy recommendations are presented.