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Testimony on the Impact of the Northeast Dairy Compact and Market Channel Pricing Strategies on the Performance of the New England Dairy Industry

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  • Ronald W. Cotterill

    (University of Connecticut)

Abstract

Using recently obtained data on cooperative premiums that give us a more direct estimate of the actual prices paid by processors for raw milk in New England, we have recalculated our impact models. The Northeast Dairy Compact’s impact on consumers, computed net of changes in cooperative premiums engendered by Compact implementation, is 2.7 cents per gallon. In our original study it was 4.5 cents per gallon. The difference is due to a reduction of 1.8 cents per gallon in cooperative premiums. This reduction occurred because cooperatives deferred to the Compact, eliminated power premiums, and charged only for the cost of actual services provided to milk processors.

Suggested Citation

  • Ronald W. Cotterill, 2001. "Testimony on the Impact of the Northeast Dairy Compact and Market Channel Pricing Strategies on the Performance of the New England Dairy Industry," Issue Papers 24, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:zwi:ipaper:24
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    File URL: http://www.zwickcenter.uconn.edu/documents/issuepapers/ip24.pdf
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    References listed on IDEAS

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    1. Ronald W. Cotterill, 2001. "Neoclassical explanations of vertical organization and performance of food Industries," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 33-57.
    2. Lass, Daniel A. & Adanu, Mawunyo & Allen, P. Geoffrey, 2001. "Impacts of the Northeast Dairy Compact on New England Retail Prices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(1), pages 83-92, April.
    3. Ronald W. Cotterill & Michael F. Brundage, 2001. "Competition, or the Lack Thereof in Local Fluid Milk Markets: San Francisco, Seattle, Chicago, Miami and Dallas-Forth Worth," Issue Papers 21, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Cotterill, Ronald & Brundage, Michael, 2001. "Competition, or the Lack Thereof in Local Fluid Milk Markets: San Francisco, Seattle, Chicago, Miami and Dallas-Forth Worth," Issue Papers 169377, University of Connecticut, Food Marketing Policy Center.
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    Cited by:

    1. Cotterill, Ronald, 2002. "A Northeast Dairy Compact Post Mortem," Issue Papers 169385, University of Connecticut, Food Marketing Policy Center.
    2. Cotterill, Ronald W., 2003. "Dairy Policy for New England: Options at the State and Regional Level," Research Reports 25176, University of Connecticut, Food Marketing Policy Center.
    3. Cotterill, Ronald, 2002. "Who Benefits from Deregulated Milk Prices: The Missing Link is the Marketing Channel," Issue Papers 169383, University of Connecticut, Food Marketing Policy Center.
    4. Ronald W. Cotterill, 2002. "A Northeast Dairy Compact Post Mortem," Issue Papers 28, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    5. Ronald W. Cotterill, 2002. "Who Benefits from Deregulated Milk Prices: The Missing Link is the Marketing Channel," Issue Papers 26, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.

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    Keywords

    dairy compact; new england; milk;
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