A Descriptive Analysis of Milk Pricing Attribute Values for Cooperative and Independent Milk Handlers in New York State

Dairy cooperatives market 85% of the milk produced by U.S. dairy farmers, although independent handlers remain relevant in many areas. Using handler report data from New York State, we provide a comparative financial analysis of pricing behavior by form of handler organization. Cooperative handlers provided price advantages to producers in terms of higher overall premiums and lower hauling costs; however, the net milk price advantage was only $0.20/cwt (about 1 percent) when all pricing components were considered and suggesting the value of cooperative ownership in dairy marketing includes other nonfinancial performance measures to substantiate such a large market share.