Product Quality In The Canadian Dairy Industry
AbstractSupply management has been shown to increase the price of milk. Technological change has induced (and allowed) processors to substitute alternative inputs, many of which can be imported tariff-free, for the traditional ingredients to lower costs and maximize profit. Meanwhile, there has been a great deal of consolidation in the dairy processing industry. We analyse the effect of these trends on cheese quality by measuring the increase in casein imports. Results suggest that supply management is negatively affecting cheese quality, by increasing casein imports due to the higher milk price. Furthermore, we were able to calculate that approximately 9.8% of specialty cheese is produced used casein. A 22% ad valorem tariff is needed to drive casein imports down to zero.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of British Columbia, Food and Resource Economics in its series Working Papers with number 15844.
Date of creation: 2004
Date of revision:
Other versions of this item:
- Nogueira, Lia & Baylis, Katherine R., 2004. "Product Quality in the Canadian Dairy Industry," NAREA-CAES Conference, June 20-23, 2004, Halifax, Nova Scotia 34201, Canadian Agricultural Economics Society & Northeastern Agricultural and Resource Economics Association.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karl Meilke & Rakhal Sarker & Danny Roy, 1998. "The Potential for Increased Trade in Milk and Dairy Products between Canada and the United States under Trade Liberalization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(2), pages 149-169, 07.
- Timothy J. Richards, 1996. "The Effect of Supply Management on Dairy Productivity," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 458-62, April.
- Timothy J. Richards & Scott R. Jeffrey, 1997. "The Effect of Supply Management on Herd Size in Alberta Dairy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 555-565.
- L. Lambertini, 1998. "Does Monopoly Undersupply Product Quality?," Working Papers 317, Dipartimento Scienze Economiche, Universita' di Bologna.
- Acharyya, Rajat, 1998. "Monopoly and product quality: Separating or pooling menu?," Economics Letters, Elsevier, vol. 61(2), pages 187-194, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.