Beruflich Dokumente
Kultur Dokumente
Ares(2016)2729191 - 13/06/2016
Technical Specifications
Index
1 BACKGROUND AND RATIONALE ....................................................................... 2
1.1 The Directorate and the Unit ............................................................................. 2
1.2 Policy background............................................................................................. 2
1.3 Research context ............................................................................................... 3
2 AIMS AND OBJECTIVES......................................................................................... 3
4 APPROACH ............................................................................................................... 4
10 DURATION ................................................................................................................ 9
11 LANGUAGE............................................................................................................... 9
1. BACKGROUND AND RATIONALE
1.1 The Directorate and the Unit
The Economics of Agriculture Unit of the Directorate "Sustainable Resources" of the European
Commission's Joint Research Centre (DG JRC), based in Seville (Spain) and Ispra (Italy),
conducts research activities that provide science-based, customer-driven socio-economic and
techno-economic support for the conception, development, implementation and monitoring of
EU policies in areas of natural resource management, environment and agricultural economics.
The Economics of Agriculture Unit has oriented its research efforts to support agricultural and
rural development policy, particularly the Common Agricultural Policy (CAP) reform process in
the EU.
The research activities of sustainable agriculture and rural development within the JRC focus on
the institutional, social and economic aspects of farming and on the analysis of farmers' response
to policy changes, technological progress, market opportunities, food supply chains, food quality
and the interaction of farming with nature.
There is controversy and ongoing debate about the actual impact of vertical coordination on
farming sector. Vertical coordination in the supply chain can facilitate farmers' to reduce risk
associated with demand uncertainty and price fluctuations, have better access to credit and
technology, reduce transaction costs with accessing markets and allows for a more efficient
exchange of information and adoption of organisational structures. On the other hand, vertical
coordination is also often argued to be disadvantageous for farmers and may lead to
inefficiencies. Often argued adverse implications of vertical coordination is associated with the
market power in food chain. Market power may put farmers in a disadvantageous position in
bargaining over price and contractual relation. Indeed, increasing vertical coordination in food
supply chain was accompanied by concentration in input supply, processing and retail sectors.
Market power of downstream and upstream industries makes farmers vulnerable to unfair trading
practices (UTPs) when setting up contractual retaliation.1
Dairy sector is particularly susceptible to the UTPs in particular because of specific nature of on-
farm investments that the dairy operation requires as well as resulting from high perishability
and seasonality of milk production. Dairy farms are vulnerable to potential unfair commercial
treatment in the presence of imbalances in the bargaining power on the market.
1
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52013DC0037&from=EN
http://ec.europa.eu/internal_market/retail/docs/140711-study-utp-legal-framework_en.pdf
http://www.europarl.europa.eu/RegData/etudes/STUD/2015/563438/IPOL_STU%282015%29563438_EN.pdf
2
The European Parliament and the Council adopted a series of regulations (e.g. 261/2012;
511/202; 880/2012; 1308/2013) (referred to as "milk package") establishing the policy
framework for dairy sector in EU. The milk package objective was to strengthen the position of
dairy producers in the dairy supply chain and to prepare the sector to operate in a more market-
driven environment. Among others, it gives Member States (MS) the possibility to make written
contracts between farmers and processors compulsory in the milk sector, and it allows farmers to
negotiate contract terms collectively via producer organizations (POs).
The contracting authority needs this service to collect farm level data in support to evaluate and
analyse the role of contracting in determining dairy farm performance in the selected EU regions
and to identify the potential sources of UTPs existent between dairy farmers and downstream
processing and retail industry. The objective is to contribute to better understanding of the
relations prevalent in the market between downstream industry and dairy farming sector which
can be used in support of policies that tackle unfair commercial practices in the dairy food
supply chain.
3 EXPECTED RESULTS
The survey will provide data on the production characteristics and contracting and unfair trading
practices in dairy food chain in France (Normandy), Germany (Bayern), Poland (Podlaskie
region), Spain (Galicia, plus a 2nd region), The project should rely on collected data through
farm survey, public information, market parties and scientific and policy studies done in the
field.
4 APPROACH
In order to fulfil the objectives, the contractor will conduct a survey (on the base of the
questionnaire provided in annex) at farm level and provide raw data that will be transmitted to
JRC in the format required (see Section 5). The contractor is also expected to collect basic
information about the dairy processing industry collected from secondary sources.
As JRC is particularly interested in capturing the diversity of the factors affecting contracting
and unfair trading practices in dairy food chain, the aim is to target five regions in four countries,
France (Normandy), Germany (Bayern), Poland (Podlaskie region) and Spain (Galicia, plus a
2nd region to be proposed by contactor and jointly agreed with JRC).
The target population of the survey are the dairy farms producing milk in these five regions. The
Contractor should propose a sampling strategy that ensures a representative sample of the target
population. The representativeness should be based on information the contractor obtain upfront
on the characteristics of the dairy sector in the regions, such as, for example, type of farm
(family farms, corporate farms, etc.), agricultural diversity (farm size, agricultural practices,
etc.), the presence of producers' organizations/ cooperatives, or other characteristics proposed
and motivated by the contractor.
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The interviews will be done face to face and individually. The total duration of each interview
will be around 2 hours. The questionnaire should have also time coverage, at least of three years
(e.g. 2015, 2014 and 2013).
The contractor strategy to reach the final amount of interviewed farmers should be organized in
three stages:
• First, define a strategy to identify and contact the potential dairy farmers to be included in
the survey.
• Second, a pilot survey on at least 5% of the total sample of dairy farmers to pre-test the
questionnaire.
• Third, a final survey on the rest 95% of the total sample of dairy farmers with the
questionnaire pre-tested during the pilot survey.
• The final number of interviewed farms that answered the questionnaire must be at least
210 farms per region, for a total number of at least 1300 farms surveyed, including the
pilot.
The Contractor shall also collect basic information about the dairy processing industry in the
surveyed regions. This information should be collected from secondary sources such as statistical
reports, policy documents or other literature.
5 TASKS DESCRIPTION
The contractor will conduct a survey based on the questionnaire in annex. The contractor will be
responsible for the translation of the questionnaire in the language of each country in the sample.
All encoded data provided to JRC will be in English and using the units specified in the
questionnaire (standard units such as litters, Euro, Ha, etc.). The collected basic information
about the dairy processing industry from the secondary sources will be also in English.
The contractor must perform the following tasks during the implementation of the contract:
5.1 Task 1: Description of the areas to be studied, sample design and gathering the needed
information
This task implies production of a written report. The report shall include:
• The description of the agricultural sector and of the socio-economic characteristics of the
areas to be analysed;
• The strategy to identify and contact the potential dairy farms to be included in the survey;
• The description of the design of the pilot survey and of the final survey (i.e. sampling
methods used; representativeness of the sample; number of people participating in those
and the geographical areas covered).
• The sampling method for both the pilot and final surveys proposed must ensure the
representativeness of the target population in the selected areas.
The report must be provided and briefly presented to the JRC at the kick-off meeting.
This task implies the revision of the draft questionnaire prepared by JRC in annex. The revision
does not concern the content of the questions, that must remain the one expressed, but the
contractor will propose improvements in order to maximize the accuracy of, and reducing the
bias in, the data collected. In particular, the revision must concern the wording, format and order
of the questions,
The revised questionnaire should be presented, discussed and agreed at the kick-off meeting.
After acceptance by the JRC, the revised questionnaire will be translated in French, German,
Polish and Spanish as well as aligning the questions with the local vocabulary, and used by the
Contractor for the pilot survey.
• Provide data to the JRC in order to evaluate the quality of the responses.
A representative of the contracting authority may join the interviewer for 1 day during the pilot
survey and witness at least 4 interviews. It will be discussed during the kick-off meeting.
An advance of the results will be provided at the interim meeting. The evaluation of the quality
of the responses will be conducted jointly by the Contractors and the contracting authority after
the pilot survey finalization and will serve to fine tune the questionnaire design for the final
survey.
At the intermediate meeting the Contractor will propose comments and improvements to the
questionnaire on the base of the experience obtained during the pilot.
Regarding the encoding criteria, the data provided to the JRC must be raw data, i.e. data must
include all the information from every single farm surveyed. Individual farm’s responses for a
particular year must appear in rows and each question in columns, as in Table 1. Answers to
questions that do not have a time variation must be repeated for each year. Extra columns must
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be introduced to identify the country and the region, giving the value of 1 if the farmer is from
the country and region and zero otherwise. For example, in Table 1 the first row indicate the
answer of farmer 1 living in Country 1 and Region 1 to questions referred to the year 2015.
5.1 Task 6: Collection of basic information about the dairy processing industry
This task requires collection of basic information about the dairy processing industry in the
surveyed regions. This information should be collected from market parties, secondary sources
such as statistical reports, policy documents or other literature. The collected information should
include the following information about the surveyed regions:
• Market structure of the of diary sector
• Type of processing companies operating in the dairy sector
• Number and size of dairy processing companies
• Number of milk suppliers to dairy processing companies
• The size of direct sales of milk from farm relative to the milk delivered to diary
processing companies
A presentation of this basic information will be provided at the interim meeting.
6 DELIVERABLES
The following deliverables are expected from the contract:
Deliverable 1: A written report, provided in word format (.doc), containing the description of the
agricultural sector and of the socio-economic characteristics of the areas to be analysed; the
strategy to identify and contact the potential dairy farms; the description of the design of the pilot
survey and of the final survey (Task 1). A presentation of the report should be given at the kick-
off meeting.
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Deliverable 9 Deliver basic information about the dairy processing T0+9
industry (Task 6)
9 QUALITY ASSURANCE
The Contractor will establish robust means to ensure the reliability, validity, and comparability
of the information collected as well as the quality of its reporting.
10 DURATION
The maximum duration of the service will be 9 months after the last signature of the contract,
including the time needed for the approval on interim deliverables. The time needed for possible
comments and amendments to the final deliverables is not included.
11 LANGUAGE
The language of all deliverables (except for the Deliverable 2 that must be in English, French,
German, Polish and Spanish), meetings, presentations, and exchanges will be in English. The
user interface of all software should be English, and this is the language in which all data
documentation, including that inserted in source code, will be written.
It is expected that the written text in the deliverables is of high standard scientific language, ideas
are expressed in a clear and logically structured way. The text of all deliverables will be strictly
assessed according to these criteria in the review process.
Annex: Example of questionnaire
ID number:
Enumerator Name:
Interview start time: Interview end time:
Date
10
2015 2014 2013
1. Total agricultural revenues obtained from all Euro
agricultural activities
2. Total revenues of the household/company (including Euro
off-farm income)
How many hired labor works at your farm (calculated in full time jobs)*?
* if hired labor works e.g. half time please enter 0.5
2015 2014 2013
1. Yes, permanently No.
2. Yes, seasonal No.
3. None No.
What is the share of total farm-work time of hired labor dedicated to the dairy production?
2015 2014 2013
1. Permanent hired %
labour
2. Seasonal hired %
labour
What are the total and average cost per DAY you paid for hired farm labour?
2015 2014 2013
1. Total cost paid for Euro/year
hired labour
2. Average cost per Euro/day
day paid for hired
labour
Which is the average cost per DAY for hired farm labour in your region?
2015 2014 2013
1. Cost of hired Euro/day
labour
How many household members work at the farm (calculated in full time jobs)*?
* if somebody works e.g. half time please enter 0.5
2015 2014 2013
Number of family No.
labor (full time
equivalent)
What is the share of total farm-work time that household members dedicated to the dairy
production?
2015 2014 2013
Share of time of %
household members
dedicated to dairy
Does the farm owner (head of the farm) work outside the farm?
2015 2014 2013
1. Yes, full time [yes,
no]
2. Yes, permanently [yes,
but not full time no]
3. Yes, but only [yes,
seasonally no]
4. No, does not work [yes,
outside the farm no]
How many other members of the family work outside the farm (calculated in full time jobs)*?
* if somebody works e.g. half time please enter 0.5
2015 2014 2013
1. Yes, full time No.
2. Yes, permanently No.
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but not full time
3. Yes, but only No.
seasonally
4. No, they do not No.
work outside the farm
1. Yes
2. No
Do you have a successor (someone who will take over the farm after you)?
1. Yes;
2. No
Note: the questions in this section refer to the purchaser to which the farm delivered in a
particular year.
What type of purchaser do you deliver the milk to and how much?
Type of purchasers If Yes, quantity of delivered milk
2015 2014 2013
1. Dairy processor (company) Liters
2. Trader (collection firm/individual) Liters
3. Collecting cooperative Liters
4. Processing cooperative Liters
5. Producer organization Liters
6. Direct sales Liters
7. Own processing Liters
8. Own consumption (e.g. feed, food) Liters
9. Other ............ Liters
Do you deliver the milk to the purchaser or purchaser collects it from your farm?
Type of purchasers (1 - 3 as defined bellow)
2015 2014 2013
1. Dairy processor (company)
2. Trader (collection firm/individual)
3. Collecting cooperative
4. Processing cooperative
5. Producer organization
6. Direct sales
7. Own processing Not appl. Not appl. Not appl.
8. Own consumption (e.g. feed, food) Not appl. Not appl. Not appl.
9. Others ............
1. Purchaser collects milk from farm
2. I deliver milk to the purchaser
3. Other
How far is the main purchaser to whom you deliver the milk located from your farm (distance
from the farm)?
Distance
2015 2014 2013
1. Dairy processor (company) km
2. Trader (collection firm/individual) km
3. Collecting cooperative km
4. Processing cooperative km
5. Producer organization km
6. Direct sales km
7. Own processing km Not appl. Not appl. Not appl.
8. Own consumption (e.g. feed, food) km Not appl. Not appl. Not appl.
9. Others ............ km
When did you start delivering the milk to the purchaser (year)?
For 2013 and 2014 indicate the start delivery date only if the main purchaser is different than the one in 2015
Year
2015 2014 2013
1. Dairy processor (company) Year
2. Trader (collection firm/individual) Year
3. Collecting cooperative Year
4. Processing cooperative Year
5. Producer organization Year
6. Direct sales Year
7. Own processing Year Not appl. Not appl. Not appl.
8. Own consumption (e.g. feed, food) Year Not appl. Not appl. Not appl.
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9. Others ............ Year
What is the total average daily volume of milk processed/collected of purchaser to which you
deliver the milk?
Type of purchasers If Yes, quantity of delivered milk
2015 2014 2013
1. Dairy processor (company) 1000 liters/day
2. Trader (collection firm/individual) 1000 liters/day
3. Collecting cooperative 1000 liters/day
4. Processing cooperative 1000 liters/day
5. Producer organization 1000 liters/day
6. Direct sales 1000 liters/day
7. Own processing 1000 liters/day Not appl. Not appl. Not appl.
8. Own consumption (e.g. feed, food) 1000 liters/day Not appl. Not appl. Not appl.
9. Other ............ 1000 liters/day
How long (in years) have you delivered milk to the main purchaser?
Years
Does your main milk purchaser apply or participate in any type of voluntary initiative related to
Principles of Good Practice in commercial relationships (e.g. initiatives that contain a list of
examples of fair and unfair practices trading relationships, Supply Chain Initiative)?
2015 2014 2013
1. Yes [0,1]
3. No [0,1]
3. I don't know [0,1]
F. CONTRACT CHARACTERISTICS WITH THE MAIN DAIRY PURCHASER
Notes:
• The questions in this section refer to contact with the (main) purchaser (dairy), to which the farm
delivered in a particular year.
• For 2013 and 2014 provide answer only if the contract is different than the one in 2015.
Do you have a written contract for your milk deliveries to main purchaser?
2015 2014 2013
1. Yes - individual contract [0,1]
2. Yes - contract with cooperative/producer [0,1]
organization
3. Yes – both individual contract and with [0,1]
cooperative/producer organization
4. Oral contract [0,1]
5. No contract [0,1]
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4. Price is negotiated between cooperative/ [0,1]
association/ producer organization and purchaser
during the contract duration
5. Price is negotiated between farmer cooperative/ [0,1]
association/ producer organization and purchaser
during the contract duration
6. Price is unilaterally set by the purchaser during [0,1]
the contract duration
7. Price is unilaterally set by the farmer or farmer [0,1]
cooperative/ association/ producer organization
during the contract duration
8. Price setting is not defined in contract [0,1]
9. Other [0,1]
Does the price as set in the contract is reduced because of the following benefits provided by the
purchaser?
2015 2014 2013
1. Yes, for milk collection [0,1]
2. Yes, for credit provided [0,1]
3. Yes, for inputs provided [0,1]
4. Yes, for sanitary and veterinary services provided [0,1]
5. Yes, for consultancy services [0,1]
6. Yes, for other benefits [0,1]
7. No [0,1]
Does the contract provide that you have to pay fine (e.g. fees, reduction in price) if you fail to
deliver milk under contract terms?
2015 2014 2013
1. Yes, for any failure to deliver [0,1]
2. Yes, for a major failure to deliver [0,1]
3. No, I do not need to pay fine [0,1]
4. No, it is not established in the contract [0,1]
Does the contract provide that the purchaser can refuse milk delivery or adjust contract terms if
unfavourable market situation (e.g. too much milk on the market)?
2015 2014 2013
1. Yes [0,1]
2. No [0,1]
3. I don't know [0,1]
Do you have a third party dispute resolution mechanism agreed with the main milk purchaser?
2015 2014 2013
1. Yes, explicitly established (written) in the contract [0,1]
1.1 formal justice procedure [0,1]
1.2 voluntary system (out-of-court settlement) [0,1]
1.3 other [0,1]
2. Yes, non-written agreement [0,1]
2.1 formal justice procedure [0,1]
2.2 voluntary system (out-of-court settlement) [0,1]
2.3 Other [0,1]
3. No [0,1]
3. I don't know [0,1]
Does the contract set with the main purchaser oblige you to invest in dairy production activity?
[yes,no] Year(s) when Amount (Euros)
required (2013,
2014,2015)
1. Milking equipment
2. Milk cooling tank
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3. New race of dairy cow
4. Milk quality control system (e.g.
sanitary standards)
4. Other equipment
5. Other dairy related investments
Has it happened over the last 10 years that dairy specific investments were required (either
formally or informally) by the main purchaser and you would not do it without this pressure?
1. Yes
2. No
Compared to the situation 10 years ago, is the pressure form main purchaser to make dairy
specific investments (that you would not do it without this pressure)
1. Stronger
2. More or less the same
3. Weaker
4. Do not know/cannot say
5. Was not in business 10 years ago
Does the contract with the main purchaser impose marketing/supply constraints for your milk
deliveries?
[yes,no] Year(s) when in
place (2013,
2014,2015)
1. I cannot sell milk to other dairy
processors
2. Other………………………………………..
What is the frequency of the milk quality testing set in the contract?
2015 2014 2013
1. Every day [0,1]
2. Once in a week or more
[0,1]
often
3. Once in a months or more
[0,1]
often
4. A couple of times in the year [0,1]
5. No testing is set [0,1]
In the case the purchaser fails to fulfil the contract (e.g. no payment for deliveries, delayed
payments), does the contract have safeguard clauses that des-incentivise such behaviour? (more
than one answers possible)
2015 2014 2013
1. Yes, I do not need to repay the credit provided by the purchaser or I can [0,1]
delay its repayment (e.g. advance payment, loan, credit for buying inputs
e.g. cooling tank, fertilisers, heifer)
2. Yes, I do not need to repay inputs provided by the purchaser or I can [0,1]
delay their repayment
3. Yes, I do not need to repay for other benefits provided by the purchaser [0,1]
or I can delay their repayment
4. Yes, purchaser needs to pay interest on any overdue payments (e.g. for [0,1]
delayed payments)
5. Yes, a security guarantee is deposited in the bank which purchaser losses [0,1]
in the case of overdue payments (e.g. for delayed payments beyond a
specified period)
6. Yes, Other (please specify…………………………………………… …………….?) [0,1]
7. No, the contract does not have such safeguard clauses [0,1]
Does the contract stipulate the requirement that both parties treat confidential data or information
received from the other party?
2015 2014 2013
1. Yes [0,1]
2. No [0,1]
3. I don't know [0,1]
Does the contract provide the same terms for contract cancelation for both parties?
2015 2014 2013
1. Yes, both parties have same terms [0,1]
2. No, purchaser has better terms (e.g. shorter time [0,1]
for cancelation notice)
3. No, I have better terms (e.g. shorter time for [0,1]
cancelation notice)
4. I don't know [0,1]
G. CONTRACT NEGOTIATION WITH THE MAIN MILK PURCHASER (BEFORE THE CONTRACT
EXECUTION)
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Note: the questions in this section refer to contract with the (main) purchaser (dairy), to which
the farm delivered in a particular year.
Please have a look at items mentioned below and choose three most important characteristics
which you think are most important to your relationship with dairy company. Provide answer for
the current situation and also for 10 years ago (please rank them according to their importance: 1
=most important; and 2 & 3 subsequent characteristics)?
Ranking for the Ranking for the
current situation situation 10 years
ago
1. Price level
2. Price stability
3. Constancy of milk collection
4. Assurance that all of my milk is collected
5. Loyalty and trust (honesty)
6. Payment on time
7. Trainings
8. Consulting services
9. Assistance programmes (e.g. credit, inputs)
10. Sanitary and veterinary services
11. Distance from farm
12. Other (Please pecify?................................................................)
Have you used external legal services (lawyer) or assistance from other sources (e.g. farm
unions) to prepare and negotiate contract with the main dairy purchaser? (multiple answers
possible for yes answer)
For 2015 the question refers to contract in that year; for 2013 provide answer only if the contract was different than in 2015; for
last 10 years provide answer in any case
2015 2014 2013 In last 10 years
1. Yes, lawyer
2. Yes, cooperative/ producer organization/
farm union
3. Yes, other
4. No
Has the purchaser used external legal services (lawyer) or assistance from other sources to
prepare and negotiate contract with you? (multiple answers possible for yes answer)
For 2015 the question refers to contract in that year; for 2013 provide answer only if the contract was different than in 2015; for
last 10 years provide answer in any case
2015 2014 2013 In last 10 years
1. Yes, lawyer
3. Yes, other
4. No
5. I do not know
What was the duration of the contract negotiation with the main purchaser?
For 2015 the question refers to contract in that year; for 2013 provide answer only if the contract was deferent than in 2015
2015 2014 2013
1. No negotiation [0,1]
2. Between 0 and 1 hour [0,1]
3. Between 1 and 3 hours [0,1]
4. More than 3 hours in one
[0,1]
meeting
5. More than 3 hours in several
[0,1]
meetings
6. Other [0,1]
Which of the following contract terms were negotiated with the main purchaser and how?
For 2015 the question refers to contract in that year; for 2013 provide answer only if the contract was deferent than in 2015
(1 - 5 as defined bellow)
2015 2014 2013
1. Milk price
2. Milk quality requirements
3. Milk quantity
4. Timing of payments for milk delivery
5. Arrangements on milk collection
6. Required investments on dairy production
7. Consultancy (regarding environmental protection, animal welfare, milk
quality, accountancy, market information, pricing methods, intranet)
8. Credit provided by the dairy (e.g. advance payment, loan, credit for buying
inputs e.g. cooling tank, fertilisers, heifer)
9. Support in getting bank credit
10. Support in buying inputs
11. Sanitary and veterinary services
12. Discounts for purchases in a shop owned by the dairy company
13. Premiums (in kind or in money) because of Christmas/fairs/membership
aniversary/birth of your baby? etc.
14. Other (please specify……………………………………………………………………………….?)
1. Yes, negotiated by me;
2. Yes, negotiated by cooperative/ producer organization;
3. Yes, negotiated by me and by cooperative/ producer organization;
4. Not negotiated because they are set by market standards;
5. Not negotiated because they were imposed by the purchaser (take it or leave it);
6. No, because other reasons.
Compared to the situation 10 years ago, do you think your negotiation power vis-à-vis dairy
company is
1. Stronger
2. More or less the same
3. Weaker
4. Do not know/cannot say
5. Was not in business 10 years ago
If your negotiation power vis-à-vis dairy company is stronger/weaker compared to the situation
10 years ago, could you give a maximum of three most important reasons
1. There are less/ more dairy companies to which I can deliver milk [less, more]
2. My dairy farm is smaller/ bigger now [smaller, bigger]
3. There are fewer/ more dairy farms in may region [fewer/ more]
4. The dairy cooperative/producer organization/ association is [less, more e]
less/more effective/ efficient/ better organised
4. The dairy cooperative/producer organization/ association is [smaller, bigger]
smaller/ bigger now
5. I am a member of dairy cooperative/producer organization/ [0, 1]
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association now but was not 10 years ago
6. I am not a member of dairy cooperative/producer organization/ [0, 1]
association now but was 10 years ago
7. Other reason [0,1]
8. Was not in business 10 years ago [0,1]
H. CONTRACTUAL RELATIONSHIP WITH THE MAIN MILK PURCHASER DURING THE CONTRACT
EXECUTION
Note: the questions in this section refer to contract with the (main) purchaser (dairy), to which
the farm delivered in a particular year.
Has it occurred that the following contractual elements were not set in the contract and were
needed to be set during the contract execution?
2015 2014 2013 last 10 years
1. Yes, the price setting [yes,no]
2. Yes, the required quality [yes,no]
3. Yes, the required quantity [yes,no]
4. Yes, other terms of contract (e.g. credit, [yes,no]
information provision, milk collection,
sanitary/veterinary services)
5. No, such a situation did not occur [yes,no]
Did it happen that in your opinion the purchaser (dairy) did not fulfil the contract?
2015 2014 2013 last 10 years
1. No, it did not [yes,no]
2. Yes [yes,no]
2.1 dairy paid lower price than contracted [yes,no]
2.2 did not collect milk or refused to accept milk delivery [yes,no]
2.3 paid only with delay [yes,no]
2.5 did not provide additional services as promised [yes,no]
2.6 because dairy required milk quality or quantity [yes,no]
different than agreed
2.7 dairy imposed additional fees/ deductions [yes,no]
2.8 other reasons [yes,no]
In the case that you did not fulfil the contract, has the purchaser used the third party dispute
resolution mechanism?
2015 2014 2013 last 10 years
1. Yes [0,1]
1.1 formal justice procedure (court) [0,1]
1.2 voluntary system (out-of-court settlement) [0,1]
1.3 other [0,1]
2. No [0,1]
In the case that in your opinion the purchaser did not fulfil the contract, have you used the third
party dispute resolution mechanism?
2015 2014 2013 last 10 years
1. Yes [0,1]
1.1 formal justice procedure (court) [0,1]
1.2 voluntary system (out-of-court settlement) [0,1]
1.3 other [0,1]
2. No [0,1]
2.1 it is too costly [0,1]
2.2 I risk that the contract/ commercial relationship is [0,1]
terminated
2.3 Other [0,1]
In the case you were involved in the third party dispute resolution mechanism to settle the
dispute (either initiated by you or by the purchaser) during the last 10 years, what is the final
outcome of the procedure?
No. of Year(s) when Year(s) when
cases initiated (2005- finalised (2015-
2015) 2015)
1. I lost
2. The purchaser lost
3. The dispute is not finalized yet
4. The case was refused by the third party
5. Other outcome
Did you threat to take legal action against the purchaser which you did not follow?
2015 2014 2013 last 10 years
1. Yes [0,1]
1.1 to formal justice procedure (court) [0,1]
1.2 to voluntary system (out-of-court settlement) [0,1]
1.3 to police [0,1]
1.3 other [0,1]
2. No [0,1]
Did the purchaser threat to take legal action against you which was not followed?
2015 2014 2013 last 10 years
1. Yes [0,1]
24
1.1 to formal justice procedure (court) [0,1]
1.2 to voluntary system (out-of-court settlement) [0,1]
1.3 to police [0,1]
1.3 other [0,1]
2. No [0,1]
Has it occurred that the (main) dairy purchaser has changed the following contractual elements
unilaterally without negotiation with you (or farm organization/cooperative)?
2015 2014 2013 last 10 years
1. The price was changed unilaterally [yes,no]
2. The required quality was changed unilaterally [yes,no]
3. The required quantity was changed unilaterally [yes,no]
4. Other terms of contract (e.g. credit, information [yes,no]
provision, milk collection, sanitary/veterinary
services) were changed unilaterally
5. Other …… [yes,no]
Compared to the situation 10 years ago, are the unilateral changes made by dairy purchaser to
contractual elements without negotiation more or less frequent in last 3 years?
1. More frequent
2. More or less the same
3. Less frequent
4. Do not know/cannot say
5. Was not in business 10 years ago
Has it occurred that you (or farm organization/cooperative) have changed the following
contractual elements unilaterally without negotiation with the (main) dairy purchaser?
2015 2014 2013 last 10 years
1. The price was changed unilaterally [yes,no]
2. The required quality was changed unilaterally [yes,no]
3. The required quantity was changed unilaterally [yes,no]
4. Other terms of contract (e.g. credit, information [yes,no]
provision, milk collection, sanitary/veterinary
services) were changed unilaterally
5. Other …… [yes,no]
Compared to the situation 10 years ago, are the unilateral changes made by you (or farm
organization/cooperative) to contractual elements without negotiation more or less frequent in
last 3 years?
1. More frequent
2. More or less the same
3. Less frequent
4. Do not know/cannot say
5. Was not in business 10 years ago
Has it occurred that the (main) dairy purchaser has changed the following contractual elements
in negotiation with you (or farm organization/cooperative)?
2015 2014 2013 last 10 years
1. The price was changed in negotiation [yes,no]
2. The required quality was changed in negotiation [yes,no]
3. The required quantity was changed in negotiation [yes,no]
4. Other terms of contract (e.g. credit, information [yes,no]
provision, milk collection, sanitary/veterinary
services) were changed in negotiation
5. Other …… [yes,no]
Compared to the situation 10 years ago, are the changes made by dairy purchaser to contractual
elements in negotiation with you more or less frequent in last 3 years?
1. More frequent
2. More or less the same
3. Less frequent
4. Do not know/cannot say
5. Was not in business 10 years ago
Did it happen that you had to pay fine (e.g. fees, reduction in price) because you fail to deliver
milk under contract terms?
2015 2014 2013 last 10 years
1. Yes, several times for any small failure to deliver [0,1]
2. Yes, few times only for major failure to deliver [0,1]
3. No, I did not pay fine because I have always [0,1]
delivered on time
4. No, it is not established in the contract [0,1]
In the case of contact disputes (e.g. due to contract breach, court case) or contract renegotiation
have you used external legal services (lawyer) or legal assistance from other sources (e.g.
producer organization/ cooperative/ farm unions)? (multiple answers possible)
2015 2014 2013 Last 10 years
1. Yes, lawyer [0,1]
2. Yes, producer organization/ [0,1]
cooperative/ farm unions
3. Yes, other [0,1]
4. No [0,1]
In the case of contact disputes (e.g. due to contract breach, court case) or contract renegotiation
has the purchaser used external legal services (lawyer) or legal assistance from other sources?
2015 2014 2013 Last 10 years
1. Yes, lawyer [0,1]
2. Yes, other [0,1]
3. No [0,1]
4. I do not know [0,1]
How often do you re-negotiate conditions with the main purchaser under which you sell your
milk during contract execution (e.g. method to calculate price, frequency of milk collections,
etc.)?
(if answer =5, go to question Q82)
2015 2014 2013 last 10 years
1. Once in a month or more often [0,1]
2. A couple of times in the year [0,1]
3. Once in a year [0,1]
26
4. Less frequently than once in a year [0,1]
5. I do not negotiate, conditions are fixed
[0,1]
by contract
6. I do not negotiate at all, other reasons [0,1]
If you sometimes re-negotiate the conditions under which you sell your milk, who is the initiator
of these negotiations?
2015 2014 2013 last 10 years
1. Always from my initiative [0,1]
2. Predominantly from my initiative [0,1]
3. Sometimes from my initiative
sometimes from dairy's initiative (more or [0,1]
less half-half);
4. Predominantly from dairy's initiative [0,1]
5. Always from dairy initiative [0,1]
Has it occurred that the contract between (main) dairy purchaser and you was terminated before
its expiration (end period)?
2015 2014 2013 last 10 years
1. Yes, the contract was terminated unilaterally by the [yes,no]
purchaser without respecting terms of termination
set in the contract (e.g. by not providing notice
period, or without notice in writing)
2. Yes, the contract was terminated unilaterally by me [yes,no]
without respecting terms of termination set in the
contract (e.g. by not providing notice period, or
without notice in writing)
3. Yes, the contract was terminated in [yes,no]
negotiation/voluntary not respecting the contract
4. Yes, the contract was terminated in [yes,no]
negotiation/voluntary respecting the contract
5. No, the contract was terminated after its expiration [yes,no]
6. No, the contract has not expired [yes,no]
In the case purchaser collects milk from your farm, does it happen that the milk tank cannot
come to your farm (due to rainfall/snowfall, etc.)?
2015 2014 2013 last 10 years
1. Yes, often [0,1]
2. Yes, a couple of times [0,1]
3. Rarely [0,1]
4. No [0,1]
How frequently is the quality of your milk tested (could be different than set in contract)?
2015 2014 2013 last 10 years
1. Every day [0,1]
2. Once in a week or more often [0,1]
3. Once in a months or more often [0,1]
4. A couple of times in the year [0,1]
5. No test is done [0,1]
Who does the milk quality testing (could be different than set in contract)?
2015 2014 2013 last 10 year
1. Only purchaser [0,1]
2. Only third party [0,1]
3. Mainly third party and purchaser
[0,1]
only from time to time
4. Mainly purchaser and third party
[0,1]
only from time to time
5. No testing is done [0,1]
6. Other [0,1]
Did it happen that in your opinion that the purchaser has used confidential information received
from you about your farm to obtain advantage/benefit in the contractual relathionhip (e.g. better
price, transfer of costs/fees)?
2015 2014 2013 last 10 year
1. Yes [0,1]
2. No/ Not aware of it [0,1]
Have you ever used the following support/premiums form the main purchaser in last 10 years?
(1 - 4 as Year(s)
defined when used
bellow) (2005-
2015)
1. Consultancy (regarding environmental protection, animal welfare, milk quality,
accountancy, market information, pricing methods, intranet)
2. Credit provided by the dairy (e.g. advance payment, loan, credit for buying
inputs e.g. cooling tank, fertilisers, heifer)
3. Support in getting bank credit
4. Support in buying inputs
5. Sanitary and veterinary services
6. Discounts for purchases in a shop owned by the dairy company
7. Premiums (in kind or in money) because of Christmas/fairs/membership
aniversary/birth of your baby? etc.
8. Other (please specify………………………………………………………………………….?)
1. Yes; 2. No, because I did not need; 3. No, because dairy did not offer; 4. No, because dairy refused me.
Note: the questions in this section refer to contact with the (main) purchaser (dairy), to which
the farm delivered in a particular year.
Has it occurred that the contract between (main) dairy purchaser and you was terminated before
its expiration (end period) and what happened after contact termination?
2015 2014 2013 last 10 years
1. Yes, the contract was terminated unilaterally [yes,no]
1.1. a new contract was signed with the same purchaser [yes,no]
1.2. a new contract was signed with a new purchaser [yes,no]
1.2. no contract was signed [yes,no]
2. Yes, the contract was terminated in [yes,no]
negotiation/voluntary
28
2.1. a new contract was signed with the same purchaser [yes,no]
2.2. a new contract was signed with a new purchaser [yes,no]
2.2. no contract was signed [yes,no]
3. Yes, the contract was terminated for other reasons [yes,no]
….………….
3.1. a new contract was signed with the same purchaser [yes,no]
3.2. a new contract was signed with a new purchaser [yes,no]
3.2. no contract was signed [yes,no]
4. No, the contract was terminated after its expiration [yes,no]
4.1. a new contract was signed with the same purchaser [yes,no]
4.2. a new contract was signed with a new purchaser [yes,no]
4.2. no contract was signed [yes,no]
Has it occurred that the (main) dairy purchaser has changed the following contractual elements
with the new contract (either after the previous contact was terminated unilaterally. voluntarily
or after its expiration) with you (or farm organization)?
2015 2014 2013 last 10 years
1.1 The price (setting formula) reduced (worsened) [yes,no]
1.2 The price (setting formula) increased (improved) [yes,no]
2.1 The required quality decreased [yes,no]
2.2.The required quality increased [yes,no]
3.1 The required quantity decreased [yes,no]
3.2 The required quantity increased [yes,no]
4.1 The required investments in dairy related [yes,no]
activities (e.g. equipment) decreased
4.2 The required investments in dairy related [yes,no]
activities (e.g. equipment) increased
5.1 Other terms of contract (e.g. credit, information [yes,no]
provision, milk collection, sanitary/ veterinary
services) were worsened
5.2 Other terms of contract (e.g. credit, information [yes,no]
provision, milk collection, sanitary/ veterinary
services) were improved
6. No, the contract was not changed [yes,no]
Do you have unresolved past contract disputes with the main purchaser?
2015 2014 2013 Last 10 years
1 Yes, delayed payments [yes,no]
1.1 in formal justice procedure (court) [yes,no]
1.2 in voluntary dispute resolution system procedure [yes,no]
(out-of-court settlement)
1. 3 unchallenged in any dispute resolution system [yes,no]
2 Yes, unfulfilled other contract terms [yes,no]
2.1 in formal justice procedure (court) [yes,no]
2.2 in voluntary dispute resolution system procedure [yes,no]
(out-of-court settlement)
2. 3 unchallenged in any dispute resolution system [yes,no]
3. No, I do not have unresolved past contract [yes,no]
disputes
Compared to the situation 10 years ago, are contract disputes more or less frequent in last 2
years?
1. More frequent
2. More or less the same
3. Less frequent
4. Do not know/cannot say
5. Was not in business 10 years ago
To how many dairies you delivered your milk during the period 2013-2015?
(Please take into account a situation in which local dairy plant has been bought by other company).
To how many dairies you delivered your milk during last 10 years?
(Please take into account a situation in which local dairy plant has been bought by other company).
(if answer =1, go to question Q98).
What was the reason for each change of a dairy purchaser in last 10 years?
Subsequent changes Reason for a change Year of change
(1 - 6 as defined bellow)
1. First change
2. Second change
3. Third change
4. Fourth change
5. Fifth change
Reason for a change:
1. It was my decision, because of low price;
2. It was my decision, because of delayed payments;
3. It was my decision, because of other reasons …..;
4. Previous dairy resigned from my milk, and I had to find a new dairy;
5. The dairy I was delivering milk went bankrupt/was overtaken by other dairy company;
6. Other (please specify)
Please indicate the following information about the potential dairy companies (specific dairy
plants) to which you could deliver your milk (other than those to which you currently deliver
milk to): name, distance from your farm and total processed/ collected volume of milk per day
2015 2014 2013
Name Distance Average Name Distance Average Name Distance Average
(km) processed (km) processed (km) processed
volume volume (1000
(1000 (1000 liters/day)
liters/day) liters/day)
1 Name/ distance/
processed volume
2 Name/ distance/
processed volume
3 Name/ distance/
30
processed volume
4 Name/ distance/
processed volume
5 Name/ distance/
processed volume
On the scale from 1 to 5 (where 1 means very easy) please assess how easy it would be for you
to change the dairy purchaser?
Easiness to change the dairy purchaser
(1 - 5 as defined bellow)
2015
2014
2013
10 years ago
1. Very easy, 2. Rather easy, 3. So-so 4. Rather difficult, 5. Very difficult.
On the scale from 1 to 5 (where 1 means very easy) please assess how easy it would be for your
dairy company to find a substitute for your milk deliveries?
Easiness to change the dairy purchaser
(1 - 5 as defined bellow)
2015
2014
2013
10 years ago
1. Very easy, 2. Rather easy, 3. So-so 4. Rather difficult, 5. Very difficult.
Please indicate the names of dairies (specific dairy plants), to which farmers in your
neighbourhood deliver their milk? Could you also deliver there?
Name of dairy (specific dairy plant) for farmers from neighb. Your possibility: 1. Yes; 2. No
1.
2.
3.
4.
5.
6.
If you would want to change a dairy, what basic barriers would you encounter (please give your
answer to each item below):
2015 2014 2013
1. Written contract [yes,no]
2. Lack of other dairies in the neighbourhood [yes,no]
3. Membership shares would be paid with (long) delay [yes,no]
4. I would not get such a good conditions anywhere else [yes,no]
5. I have a credit from the dairy [yes,no]
6. I have a credit from a bank which is guaranteed by the dairy [yes,no]
7. Risk of cooperation with a new dairy [yes,no]
8. Higher milk quality requirements [yes,no]
9. Location of the dairy is too far from my farm [yes,no]
10. Other dairies do not collect milk from farm [yes,no]
11. It would require to build new business network with local [yes,no]
partners
12. I would need to become member of new cooperative/ [yes,no]
producer organization
13. Other dairies are not realyable [yes,no]
14. Other dairies are not willing to collect all my milk [yes,no]
15. There are other support measures - I would have to account [yes,no]
for them
16. Other (please specify?......................................................) [yes,no]
32
inputs, collection fee)
Protein content %
Fat content %
Somatic cells %
Bacteria %
Other parameters from the invoice (please provide what
parameters ………………..……………………………)
d) Direct sales
2015 2014 2013
Price received EUR/liter
Price inclusive of all deductions/fees (e.g. for credit provided, EUR/liter
inputs)
Price excluding all deductions/fees (e.g. for credit provided, EUR/liter
inputs, collection fee)
Protein content %
Fat content %
Somatic cells %
Bacteria %
Other parameters from the invoice (please provide what
parameters ………………..……………………………)
Do you think the price you receive from the main purchaser is above or below the price that
other farmers receive from the same dairy purchaser?
(the question refers to contacts with the (main) purchaser (dairy), to which the farm delivered in a particular year)
2015 2014 2013
1. It is bellow [0,1]
2. It is above [0,1]
3. It is the same [0,1]
4. I do not know [0,1]
Do you think you could get a higher price in other dairy purchaser compared to price you receive
from the main purchaser?
(the question refers to contacts with the (main) purchaser (dairy), to which the farm delivered in a particular year)
2015 2014 2013
1. Yes [0,1]
2. No [0,1]
3. I do not know [0,1]
How often do you check (look for information on) the following prices:
Type of a price Frequency
(1- 6 as defined bellow)
1. World milk price
2. Milk price in your country
3. Milk price in your region
4. Milk price in other dairies
5. Milk price received by neighbouring farms/friends
6. Milk price in direct sales to consumers
1. Once a day, 2. Once a week, 3. Once every half a month; 4. Once a month, 5. Less frequently than once a month, 6. I do not
check at all.
Is milk price volatility a problem for you?
1. Yes; 2. No; 3. I do not know
If not, is there such an opportunity when cooperating with other farmers from the same dairy
?
(the question refers to contacts with the (main) purchaser (dairy), to which the farm delivered in a particular year)
1. Definitely Yes; 2. Rather Yes; 3. Rather No; 4. Definitely No.
Do you, with other farmers, have a real opportunity to dismiss the president of the dairy or
members of the board ?
(the question refers to contacts with the (main) purchaser (dairy), to which the farm delivered in a particular year)
1. Definitely Yes; 2. Rather Yes; 3. Rather No; 4. Definitely No.
If you are a member of a milk producer group, please provide a name of this producer group and
year when you have joined:
Name Year when joined
2015
2014
2013
10 years ago
34
Which innovations have you adopted for dairy farming in the last five years? (adopted and still
using nowadays)
Year of
adoption
1. Bought new race of dairy cow
2. New type of dairy machinery (e.g. milking machine, cooling
tank)
3. New feeding technique
4. Other ……………….
With whom do you most often consult important decisions about your farm?
1. Yes; 2. No
1. Consultant from extension services
2. Private consultant
3. Farmers' cooperative (to which I belong)
4. Dairy company
5. Other farmers
6. Family members
7. Association of cow breeders
8. Input supplier
9. Veterinary
10. School/university
What is your estimated value of total operational production costs spend on all agricultural
activities on your farm?
(Indicate total values in Euro of feed consumed in a given year)
2015 2014 2013
1. Total value of operational costs Euro
1.1. Seeds Euro
1.2. Fertilizers Euro
1.3. Crop protection (e.g. herbicides, Euro
insecticides)
1.4. Fuel and energy Euro
1.5. Sanitary and veterinary costs Euro
1.6. Feed purchases Euro
1.6. Other Euro
Can you provide an estimate of the land rental cost of the agricultural land per year in your area?
2015 2014 2013
1. Rental cost of arable land Euro/ha
2. Rental cost of grassland Euro/ha
Could you provide a list of the buildings in the farm, and the estimated cost to replace them
(value to build a new building)? (including offices and stables)
Buildings used for dairy production Buildings not used for dairy production
Building 1 Building 1
Building 2 Building 2
Building 3 Building 3
Other Buildings Other Buildings
36
Please indicate your expenditure for renting buildings?
2015 2014 2013
1. Total expenditure of rental cost of Euro
buildings used for dairy production
2. Total expenditure of rental cost of Euro
buildings not used for dairy
production
Do you combine dairy farming with any other agricultural activities (please indicate share in
total income)?
Share in total TOTAL revenues from all agricultural
activities (%)
2015 2014 2013
1. Cultivation of cereals
2. Cultivation of other arable crops
3. Cultivation of orchards (e.g. fruit, olives)
4. Production of vegetables
5. Vineyards and wine production
6. Cattle for meat production
7. Pork and poultry production
8. Sheep and goat production
9. Milk processing (e.g. cheese)
10. Other processing (milling, bakery, etc.)
11. Rural tourism
12. Other activities (e.g. seller of fertilisers,
pesticides, machineries, storage for other farmers)
What are your intentions about the future of your household (the next 5 years)?
Please provide 3 options at maximum, the most important one mark with 1.
Max 3
options
1. Increase production (number of cows, efficiency)
2. To transfer the farm to a successor
3. Start production in a new farm/to create a new farm in a different location
4. No major change or wait & see (observe what is going on and decide later)
5. Decrease the scale of a production (decrease labour force, area, number of cows etc.)
6. Move to other agricultural activity than milk production (other animal production or
crop production)
7. Move to non-agricultural activities (e.g. agro-tourism, special production, energy
production)
8. Integration (cooperation with other stages of the food chain via long-term contracts e.g.
with a diary company, with input supplier)
9. Cooperation with other dairy farmers in using machinery, selling products, buying inputs
etc.
Is the acquaintance with the following people helpful to some extent in your contact with the
dairy/input supplier?
(1 - 5 as defined bellow)
1. Village leader
2. Municipality leader
3. Mayor
4. President of the dairy company
5. Member(s) of the board in the dairy company
6. Manager/ president/ of firm/shop selling feed
1. Yes; 2. It does not matter; 3. The opposite, if anything, it hampers; 4. I do not know personally.
Have you ever took part in any elections (universal suffrage) as a candidate (local or national)?
Have you ever been elected in universal suffrage to act such as a member of municipality
council, municipality leader, village leader, etc.
1. Yes; 2. No.
38
2. In the house or office of the interviewed [0,1]
3. In the cooperative [0,1]
4. On the street or in a plot of the interviewed [0,1]
5. In the dairy stable or other farm production related [0,1]
building
6. Other, specify…………………….................. [0,1]
Which of the questions were the most difficult to understand for the interviewed?
Indicate the questions:……………………………………………………..