Commodity Policies and Product Differentiation: the California Milk Marketing Order and the Organic Dairy Sector
AbstractThis 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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Bibliographic InfoPaper 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.
Date of creation: 2007
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California; cartel; dairy; equilibrium displacement model; milk marketing orders; organic; Demand and Price Analysis; Marketing;
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