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Response of Irish creamery milk supply to price changes

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  • MICHAEL P. CUDDY

Abstract

Summary This article investigates the responsiveness of creamery milk supply to changes in the price of milk relative to agricultural materials. A basic model, which includes milk and livestock price variables and a Gini coefficient of cow concentration (a proxy for technological change) is modified to test pre- and post-EC response differences. The effects of the milk price variables are isolated using the method of principal components. Price responsiveness was higher in the post- than pre-EC period, largest responses being shown after a two to three year lag. The technology effect although positive was not significant.

Suggested Citation

  • Michael P. Cuddy, 1982. "Response of Irish creamery milk supply to price changes," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 9(2), pages 221-231.
    • Handle: RePEc:oup:erevae:v:9:y:1982:i:2:p:221-231.
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    File URL: http://hdl.handle.net/10.1093/erae/9.2.221
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