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Impact of the Northeast Interstate Dairy Compact on Consumer Prices for Fluid Milk

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  • Kenneth W. Bailey

Abstract

The objective of this paper is to analyze the impact of the Northeast Compact on retail fluid milk prices in New England. An econometric model was estimated to simulate the farm-to-retail price spread and to analyze the impact of the Northeast Compact on retail milk prices. The results found that retail milk prices rose 30.5 cents per gallon in Boston and 31.4 cents per gallon in Hartford over the Compact period compared with the pre-Compact period. About 70% of this increase was directly attributable to the Northeast Compact.

Suggested Citation

  • Kenneth W. Bailey, 2003. "Impact of the Northeast Interstate Dairy Compact on Consumer Prices for Fluid Milk," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 108-122.
    • Handle: RePEc:oup:revage:v:25:y:2003:i:1:p:108-122.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00048
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    References listed on IDEAS

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    1. Lass, Daniel A. & Adanu, Mawunyo & Allen, P. Geoffrey, 2001. "Impacts of the Northeast Dairy Compact on New England Retail Prices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(1), pages 83-92, April.
    2. Erba, Eric M. & Aplin, Richard D. & Stephenson, Mark W., 1997. "An Analysis of Processing and Distribution Productivity and Costs in 35 Fluid Milk Plants," Research Bulletins 122717, Cornell University, Department of Applied Economics and Management.
    3. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant & L. D. Schnake, 1985. "Marketing Margins and Price Uncertainty: The Case of the U.S. Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 521-528.
    4. Henry W. Kinnucan & Olan D. Forker, 1987. "Asymmetry in Farm-Retail Price Transmission for Major Dairy Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 285-292.
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    1. Capps, Oral, Jr. & Sherwell, Pablo, 2005. "Spatial Asymmetry in Farm-Retail Price Transmission Associated with Fluid Milk Products," 2005 Annual meeting, July 24-27, Providence, RI 19316, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Oral Capps & Pablo Sherwell, 2007. "Alternative approaches in detecting asymmetry in farm-retail price transmission of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 313-331.
    3. Titus O. Awokuse & Xiaohong Wang, 2009. "Threshold Effects and Asymmetric Price Adjustments in U.S. Dairy Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 269-286, June.
    4. Jackson Jeremy Jay & Thraen Cameron S. & Bozic Marin, 2013. "Conflict over Cooperation: Why So Much Disagreement over the Proposed Dairy Market Stabilization Program?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-10, November.

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