Dairy Economics Handbook

Excerpts from the report Preface: This handbook is intended as a “tool” for leaders who influence thinking and contribute to better understanding of the dairy industry. Several factors peculiar to the industry were responsible for development of the handbook. Milk is a bulky perishable raw material used daily in almost every home. Many regulations affect milk throughout the production and marketing process. The influences of supply and demand and pricing procedures may be difficult to understand. Recent technological developments have accentuated the cost-price squeeze for producers, processors, and distributors. Another problem is that of keeping up with the large amount of information already available, and new information as it is issued. A number of selected references are given. Five areas of subject matter of concern to many are covered. The purpose is to (1) bring about a better understanding of the industry, (2) develop better understanding of the function of price, (3) increase awareness of Government's role, (4) consider current beliefs on production response to changes in price, and (5) suggest a layman's approach to forecasting.