Innovations in Cooperatively Organized Breeding Networks: Analysis of Cluster Structures in Dairy Cattle Breeding in Germany

Abstract

This article examines the innovation activity of cooperatives in dairy cattle breeding and especially the links between profitability, organization, and innovation in the case of Germany. The combination of an explorative approach and multivariate data analysis, of case studies and data from the official estimation of breeding values, is intended to provide a better understanding of the interdependencies. Our cluster analysis suggests a positive effect of network activity and innovation activity on the profitability of breeding companies. Our results imply that network organizations should be supported by the members. The insights on small cooperatives with a high number of shares per member reveal a second way that could combine the benefits of networks and small cooperatives: the establishment of networks and their splitting in strategic groups with a size-related distribution of shares per member.

Appendix 1

Data sources
Companies in the sample
Landesverband Thüringer Rinderzüchter eG	www.ltr.de
Masterrind GmbH	www.masterrind.com
Rinder Union West eG	www.ruweg.de
Rinderproduktion Berlin-Brandenburg GmbH	www.rinderzucht-bb.de
Rinderzuchtverband Schleswig-Holstein eG	www.rsheg.de
Zucht- und Besamungsunion Hessen eG	www.zbh.de
Osnabrücker Herdbuch eG	www.ohg-genetic.de
Verein Ostfriesischer Stammviehzüchter eG	www.vostov.de
Annual reports	www.unternehmensregister.de
Networks
Alpengenetik	www.alpengenetik.eu
Nord-Ost-Genetic	www.nog.de
Rinderallianz	www.rinderallianz.de
Additional companies
Besamungsstation Greifenberg	www.besamungsstation.eu
Besamungsverein Neustadt a.d. Aisch	www.bvn-online.de
Göpelgenetik	www.goepelgenetik.de
Holstein Austria	www.holstein.at
Rinderbesamungsgenossenschaft Memmingen	www.rbgmm.de
Rinderunion Baden-Württemberg e.V.	www.rind-bw.de
Rinderzucht Sachsen-Anhalt eG	www.rsaeg.de
Rinderzuchtverband Franken	www.rzv-franken.de
Vereinigung der Südtiroler Tierzuchtverbände	www.vstz.it
Zuchtverband Schwarzbunt Rotbunt Bayern	www.holstein-bayern.de

1.1 1.1 Factor Analysis

1.1.1 KMO- and Bartlett-Test

Degree of sample suitability according to Kaiser-Meyer-Olkin		0.626
Bartlett test for sphericity	Approximate chi-square	25.939
	df	15
	Significance according to Bartlett	0.039

1.1.2 Rotated Component Matrix

	Component
	1	2
Top cattle	0.712	0.591
Top sires	0.934	−0.038
Index value sires	0.484	−0.024
Index value cattle	−0.070	0.974
Top sires genomic	0.933	0.175
Index sires genomic	0.952	0.048

1. Extraction method: principal component analysis. Rotation method: Varimax with Kaiser normalization. The rotation converged in three iterations

1.2 1.2 Discriminant Analysis for Cluster Solution 1

1.2.1 Wilks’ Lambda

Test of function(s)	Wilks’ Lambda	Chi-square	df	Significance
1	0.082	11.255	3	0.010

1.2.2 Standardized Canonical Discriminant Function Coefficients

	Function
	1
Innovation activity 1	1.825
Annual profit	−1.737
Cooperation intensity	1.713

1.3 1.3 Discriminant Analysis for Cluster Solution 2

1.3.1 Wilks’ Lambda

Test of function(s)	Wilks’ Lambda	Chi-square	df	Significance
1–2	0.002	12.312	6	0.055
2	0.069	5.346	2	0.069

1.3.2 Standardized Canonical Discriminant Function Coefficients

	Function
	1	2
Innovation activity 1	1.003	0.988
Annual profit	0.703	−0.593
Cooperation intensity	0.936	0.031