SATISFACTION EVALUATION OF MILK HANDLERS BY SOUTHERN U.S. DAIRY FARMERS

Abstract

An ordered probit model is used to investigate the factors that determine post-choice satisfaction of southeastern U.S. dairy farmers with their milk handlers. The impact on farmer satisfaction of milk handler attributes, farm/farmer characteristics, and farm location is tested. Results support the hypothesis that mailbox price and the quality of service provided by milk handlers have a positive effect on satisfaction levels. Bargaining-operating cooperatives are negatively associated with farmer satisfaction when contrasted against independently owned milk handlers and bargaining-only cooperatives. Choice and the ability to switch milk handlers are also important determinants of farmer satisfaction.Bargaining-only cooperative, Bargaining-operating cooperative, Dairy, Proprietary milk handler, Satisfaction, Livestock Production/Industries,