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A Regional Analysis of Milk Supply Response in the United States

Author

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  • Jean-Paul Chavas
  • Alan Francis Kraus
  • Edward V. Jesse

Abstract

A regional model of U.S. milk supply response is specified and estimated. The results suggest that, while being very inelastic in the short run, milk supply tends to be elastic in the longer-run. Also, the effects of milk price or feed price on milk production are found to vary across regions. This indicates that dairy pricing policy and feed grain policy do affect the regional evolution of U.S. dairy production.

Suggested Citation

  • Jean-Paul Chavas & Alan Francis Kraus & Edward V. Jesse, 1990. "A Regional Analysis of Milk Supply Response in the United States," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(2), pages 149-164.
    • Handle: RePEc:oup:revage:v:12:y:1990:i:2:p:149-164.
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    File URL: http://hdl.handle.net/10.1093/aepp/12.2.149
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    Cited by:

    1. Townsend, Owen & Mark, Tyler & Burdine, Kenneth, 2017. "Diversions and the Role they play in Determining Order 7 Milk Price," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252761, Southern Agricultural Economics Association.
    2. Bozic, Marin & Gould, Brian W., 2009. "The Dynamics of the U.S. Milk Supply: Implications for Changes in U.S. Dairy Policy," Staff Papers 53818, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    3. 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.
    4. Miller, Maryfrances, 2016. "Regional variation in margin response, participation, and potential federal expenditures under Dairy Margin Protection Program," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230075, Southern Agricultural Economics Association.
    5. Nicholson, Charles F. & Resosudarmo, Budy & Wackernagel, Rick, 2001. "Impacts of the Northeast Interstate Dairy Compact on New England Milk Supply," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(1), pages 93-103, April.
    6. Chung, Chanjin & Kaiser, Harry M., 2000. "Do Farmers Get An Equal Bang For Their Buck From Generic Advertising Programs? A Theroetical And Empirical Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-12, July.
    7. Marin Bozic & Brian W. Gould, 2009. "Has Price Responsiveness of U.S. Milk Supply Decreased?," Working Papers 0902, The Institute of Economics, Zagreb.
    8. Tauer, Loren W., 1993. "Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk," Staff Papers 121326, Cornell University, Department of Applied Economics and Management.

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