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Pricing and Policy Problems in the Northeast Fluid Milk Industry

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  • Ronald W. Cotterill

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    (University of Connecticut)

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    Abstract

    This article documents the need for reform of milk pricing in the Northeast. The New York price gouging law can be recast as a fair share law. This new milk policy “kills two birds with one stone.” It corrects regional inequities in raw milk pricing by reforming the pricing of milk at retail by limiting and redistributing excessive retail margins to farmers and consumers. The fair share policy relieves allocative price inefficiency, improves the performance of the federal milk market order pool, and the general performance of the Northeast dairy farming and fluid milk industries.

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    File URL: http://fmpc.uconn.edu/publications/rr/rr93.pdf
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    Bibliographic Info

    Paper provided by University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy in its series Food Marketing Policy Center Research Reports with number 093.

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    Length: 32 pages
    Date of creation: 2006
    Date of revision:
    Handle: RePEc:zwi:fpcrep:093

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    Web page: http://www.zwickcenter.uconn.edu
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    Related research

    Keywords: market power; bargaining; over-order premiums; fair share pricing;

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    Cited by:
    1. Rabinowitz, Adam N. & Liu, Yizao, 2014. "The Impact of Regulatory Change on Retail Pricing: The New York State Milk Price Gouging Law," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), April.

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