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Milk Supply Response In Delaware

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  • Elterich, G. Joachim
  • Masud, Sharif M.

Abstract

Milk supply response by dairy farmers in Delaware was analyzed employing d1stnbuted lag price structures for number of milk cows and milk production per cow. A polynominal distributed lag model is fitted to quarterly data with deflated prices for the period 1966 to 1978. The variations in the number of milk cows is explained by about 98 percent. Farmers react positively to milk prices after l-2 years, while wages and feed prices have a negative impact on cow numbers. Milk production per cow shows positive adjustments to milk prices after 6 to 15 months. Technology and feed prices influence also milk production (R l =.87). While the short-run price elasticity of milk production is only .2, the long-run aggregate elasticity grows to 2.8 percent. Intermediate-run projections of milk supply were also performed with the model.

Suggested Citation

  • Elterich, G. Joachim & Masud, Sharif M., 1980. "Milk Supply Response In Delaware," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 9(1), pages 1-5, April.
    • Handle: RePEc:ags:nareaj:159456
    DOI: 10.22004/ag.econ.159456
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    File URL: https://ageconsearch.umn.edu/record/159456/files/Milk%20supply.pdf
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    References listed on IDEAS

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    1. Harlow W. Halvorson, 1958. "The Response of Milk Production to Price," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(5), pages 1101-1113.
    2. Marc Nerlove, 1958. "Distributed lags and Estimation of Long-Run Supply and Demand Elasticities: Theoretical Considerations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(2), pages 301-310.
    3. Larry Langemeier & Russell G. Thompson, 1967. "Demand, Supply, and Price Relationships for the Beef Sector, Post-World War II Period," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(1_Part_I), pages 169-183.
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    5. Marvin Kottke, 1970. "Spatial, Temporal and Product-Use Allocation of Milk in an Imperfectly Competitive Dairy Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(1), pages 33-40.
    6. Dean Chen & Richard Courtney & Andrew Schmitz, 1972. "A Polynomial Lag Formulation of Milk Production Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 77-83.
    7. Bell, Thomas M. & Roop, Joseph M. & Willis, Cleve E., 1979. "Deflating Statistical Series: An Example Using Aggregate U.S. Demand for Textile End-Use Categories," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 31(3), pages 1-8, July.
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    Cited by:

    1. Meilke, Karl D. & Sarker, Rakhal & Le Roy, Danny G., 1996. "Analyzing The Potential For Increased Trade In Dairy Products: A Canadian Perspective," Proceedings of the 2nd Agricultural and Food Policy Systems Information Workshop, 1996: Understanding Canada\United States Dairy Disputes 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    2. Jongeneel, Roel & Gonzalez-Martinez, Ana Rosa, 2022. "The role of market drivers in explaining the EU milk supply after the milk quota abolition," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 194-209.
    3. Graham, John D. & Stennes, Brad & MacGregor, Robert J. & Meilke, Karl & Moschini, Giancarlo, 1990. "The Effects of Trade Liberalization on the Canadian Dairy and Poultry Sectors," Working Papers 244045, Agriculture and Agri-Food Canada.

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