February 19, 2008
The Cheesemaker Study
Posted by Gordon Smith

A few years ago, while I was still at the University of Wisconsin, I started investigating the business of cheesemaking. Wisconsin has long been the leading producer of cheese in the United States, but as California has increased production, Wisconsin cheesemakers have turned increasingly to the production of specialty cheeses. I noticed that some of these specialty cheesemakers were organized as corporations or limited liability companies, while others were organized as cooperatives.

At roughly the same time that I was looking into cheesemaking, I had a couple of students who were interested in the law governing cooperatives. I did a bit of reading and started asking around in the local legal community. We never discuss cooperatives in Business Organizations, and very few legal scholars write about cooperatives (Henry Hansmann being the notable exception). I became fascinated by this lost corner of our law, which obviously still has some traction in the U.S.

So last year I recruited Brayden King and Marc Schneiberg, two organizational sociologists, as co-authors. We applied for and received a grant from the University of Wisconsin Center for Cooperatives. And I took the occasion of the Wisconsin Contracts Conference to visit some cheesemakers in southwest Wisconsin. This is my first time using interviews as a research methodology, and it's a lot more fun than sitting in my office hatching theories of fiduciary duty. Not that there's anything wrong with that.

The only problem is the weather. A storm on Sunday -- rain followed by snow -- left the roads icy, and most of these cheesemakers reside in very small towns ... or in no town at all. They are accessible only by country roads, which are beautiful in the summer, but treacherous this week. Yesterday, I ended up in a snowbank on an unmarked curve. Fortunately, a cheesemaker named Ole (I am not making this up) had a truck and a chain and was able to pull me out.

My discussions with the cheesemakers are fascinating. I am constantly reminded of Stewart Macaulay's famous study of non-contractual relations because the smaller cheesemakers simply can't be bothered with formal contracts. If they come crosswise with a farmer who supplies them with milk or a distributor who sells their cheese, they just stop dealing with them. Simple.

UPDATE: If you want to get a feel for some disturbing local culture, this is one of the towns I visited yesterday.

Business Organizations, Cheese, Law & Economics, Law & Entrepreneurship, Law & Society | Bookmark

TrackBacks (1)

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8345157d569e200e550598fb78833

Links to weblogs that reference The Cheesemaker Study:

ยป Studying business: from cars to cheese from Ideoblog ...
"Ronald Coase studied automobile manufacturers (among other things), Bob Ellickson studied ranchers ( ..." [more] (Tracked on February 19, 2008 @ 9:27)
Comments (6)

1. Posted by Benjamin Smith on February 19, 2008 @ 11:21 | Permalink

Too bad you weren't in town "on the last weekend of the month on Friday or Saturday night." It would have been worth the airfare to see you singing "Summer Nights."


2. Posted by Julie Hill on February 19, 2008 @ 17:15 | Permalink

Any chance your cooperative research will spread to your new home state? After all, Moroni Feed is just down the road. There are plenty of colorful turkey farmers you could interview.


3. Posted by Lori Ringhand on February 20, 2008 @ 4:53 | Permalink

Gordon, have you made it to Augusta, WI yet? A family of Mennonites make cheese curds (the real ones: fresh, squeaky, and creamy white) in a modified trailer home parked in an old gas station lot. Delicious.


4. Posted by eric on February 20, 2008 @ 6:25 | Permalink

What's so "disturbing" about the Crazy Cow Saloon? It looks udderly delightful. And yes, I'm aware that is a cheesy joke.


5. Posted by Cliff on February 22, 2008 @ 0:33 | Permalink

Crazy Cow Saloon - classic rural Wisconsin...


6. Posted by Dave! on February 24, 2008 @ 6:22 | Permalink

That sounds like a really interesting paper... are you planning on posting a draft on SSRN?

Post a comment

If you have a TypeKey or TypePad account, please Sign In

Bloggers
Papers
Posts
Recent Comments
Popular Threads
Search The Glom
The Glom on Twitter
Archives by Topic
Archives by Date
September 2014
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30        
Miscellaneous Links