
88 ◾ Xiande Zhao, Yina Li, BarbaraB.Flynn, and Stephen Ng
Table 6.1 Comparison of Raw Milk Suppliers by Structure (Continued)
Outsourced Suppliers
Vertically Integrated
Suppliers
Small-Scale
Independent Farmers
Small Dairy Farm
Complexes Cooperative Dairy Farms
Corporate-Owned
Dairy Farms
Numbers of
suppliers
Thousands of small-
scale suppliers
Hundreds of
independent suppliers,
located together on the
small dairy farm complex
Fewer larger suppliers Internal control
Relationship
with suppliers
Arm’s length, short-
term relationship
Somewhat closer Long-term, close
relationship
Internal control
Raw milk quality Not guaranteed, tends
to be the worst
Somewhat ...