Production volume, prices and the decision for informal comercialization of milk: a study in Rio de Janeiro state

Abstract

The recent transformation in milk production was characterized by the reduction of the prices received by the producer and by the increase of the production and productivity. Facing this reality, this work has the objective to identify whether the option for informal commercialization of the milk was one of the alternatives for the small producers receiving better prices. It was used a logit model to measure the impact of production volume and price received over the probability of producers to opt to sell in informal markets. The results were compatible to what was expected, once the price received per milk litre affects positivelly and the volume production has a negative effect the probability of producers to sell his production at informal markets. Therefore, informal commercialization is an alternative for small producers to obtain better prices for their product.