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Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States

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  • Joseph V. Balagtas
  • Aaron Smith
  • Daniel A. Sumner

Abstract

The share of raw milk meeting fluid quality (Grade A) standards in the United States rose steadily through the latter half of the twentieth century, but a shrinking portion of that was used in fluid products. Grade A milk exceeds the quality standards for the manufactured products for which it has been increasingly used. We present an econometric model that exploits regional and temporal variation in policy implementation to identify the effect of marketing orders on the Grade A share of milk. Results support the hypothesis that marketing orders significantly encouraged the growth in the Grade A share of milk. Copyright 2007, Oxford University Press.

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  • Joseph V. Balagtas & Aaron Smith & Daniel A. Sumner, 2007. "Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 839-851.
    • Handle: RePEc:oup:ajagec:v:89:y:2007:i:4:p:839-851
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01010.x
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    Cited by:

    1. Richard J. Volpe & Timothy A. Park & Fengxia Dong & Helen H. Jensen, 2016. "Somatic cell counts in dairy marketing: quantile regression for count data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(2), pages 331-358.
    2. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 939-984, Elsevier.

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