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.
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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.
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