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Commodity Policies and Product Differentiation: the California Milk Marketing Order and the Organic Dairy Sector

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Author Info

  • Balagtas, Joseph Valdes
  • Kreutzer, Kristina N.

Abstract

This paper evaluates the economic consequences of milk marketing orders for producers and consumers in organic and conventional milk markets. We develop a multi-market equilibrium displacement model that disaggregates the organic and conventional segments of the California milk market in order to evaluate the economic effects of alternative policies. We find that exemption of organics from marketing order regulation would make organic farmers better off at the expense of conventional farmers, but that complete deregulation would make both organic and conventional farms worse off.

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File URL: http://purl.umn.edu/9964
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9964.

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Date of creation: 2007
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Handle: RePEc:ags:aaea07:9964

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Related research

Keywords: California; cartel; dairy; equilibrium displacement model; milk marketing orders; organic; Demand and Price Analysis; Marketing;

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Cited by:
  1. Gunter, Allison & Goemans, Chris & Pritchett, James G. & Thilmany, Dawn D., 2012. "Linking an Equilibrium Displacement Mathematical Programming Model and an Input-Output Model to Estimate the Impacts of Drought: An Application to Southeast Colorado," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124930, Agricultural and Applied Economics Association.

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