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Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data

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  • Volpe III, Richard
  • Park, Timothy
  • Hennessy, David
  • Jensen, Helen H.

Abstract

We study the determinants of somatic cell count (SCC) for fluid milk among U.S. dairies. We synthesize much of the work that has been done to model SCC economically in order to identify the potential impacts of buyer-imposed penalties and incentives within the supply chain. Additionally we estimate quantile regression for count data to measure impacts specifically for those operations with the highest SCC and to account for the statistical properties of the data. Premiums in particular have the potential to reduce SCC considerably where it is currently the highest. We draw implications for profitability in relation to SCC reduction.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 151425.

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Date of creation: Jun 2013
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Handle: RePEc:ags:aaea13:151425

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Keywords: somatic cell counts; ARMS data; farm profitability; quantile regression; count data; Demand and Price Analysis; Research Methods/ Statistical Methods; Q16; Q12; C25; Q13;

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  1. Wayne H. Howard & Ravinderpal Gill & Kenneth E. Leslie & Kerry Lissemore, 1991. "Monitoring and Controlling Mastitis on Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 299-318, 07.
  2. Alfonso Miranda, 2005. "Planned Fertility and Family Background: A Quantile Regression for Counts Analysis," Keele Economics Research Papers KERP 2005/07, Centre for Economic Research, Keele University.
  3. J.A.F. Machado & J. M. C. Santos Silva, 2003. "Quantiles for Counts," Econometrics 0303001, EconWPA.
  4. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, October.
  5. Greene, Catherine R. & Dimitri, Carolyn & Lin, Biing-Hwan & McBride, William D. & Oberholtzer, Lydia & Smith, Travis A., 2009. "Emerging Issues in the U.S. Organic Industry," Economic Information Bulletin 58617, United States Department of Agriculture, Economic Research Service.
  6. William D. McBride & Catherine Greene, 2009. "Costs of Organic Milk Production on U.S. Dairy Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 793-813, December.
  7. D. F. Benoit & D. Van Den Poel, 2009. "Benefits of Quantile Regression for the Analysis of Customer Lifetime Value in a Contractual Setting: An Application in Financial Services," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/551, Ghent University, Faculty of Economics and Business Administration.
  8. Richard Bennett & Jos IJpelaar, 2005. "Updated Estimates of the Costs Associated with Thirty Four Endemic Livestock Diseases in Great Britain: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 135-144.
  9. Atsbeha, Daniel Muluwork & Kristofersson, Dadi & Rickertsen, Kyrre, 2012. "Animal Breeding and Productivity Growth of Dairy Farms," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126205, International Association of Agricultural Economists.
  10. Joseph V. Balagtas & Aaron Smith & Daniel A. Sumner, 2007. "Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 839-851.
  11. MacDonald, James M. & O'Donoghue, Erik J. & McBride, William D. & Nehring, Richard F. & Sandretto, Carmen L. & Mosheim, Roberto, 2007. "Profits, Costs, and the Changing Structure of Dairy Farming," Economic Research Report 6704, United States Department of Agriculture, Economic Research Service.
  12. Dong, Fengxia & Hennessy, David A. & Jensen, Helen H., 2012. "Factors determining milk quality and implications for production structure under somatic cell count standard modification," Staff General Research Papers 35608, Iowa State University, Department of Economics.
  13. Richard Bennett, 2003. "The 'Direct Costs'of Livestock Disease: The Development of a System of Models for the Analysis of 30 Endemic Livestock Diseases in Great Britain," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 55-71.
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