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The Effects Of Alternative Seasonal Price Differentials On Milk Production In New York

  • Kaiser, Harry M.
  • Oltenacu, Pascal A.
  • Smith, Terry R.

Uneven monthly milk production (seasonality) is a major problem in the New York dairy industry. This article estimates expected monthly milk production response to a set of hypothetical seasonal price differentials designed to reduce the degree of seasonality. The analysis is based on a random mail survey and farm record data. The results indicate that a seasonal price differential of $1.12 per cwt. (over three times the current differential) would be necessary to completely balance spring and fall production in New York, based on the perceptions of farmers surveyed. Also, producers with better managerial skills are shown to be able to reduce their seasonality at a significantly lower price differential than less skilled farm managers.

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Article provided by Northeastern Agricultural and Resource Economics Association in its journal Northeastern Journal of Agricultural and Resource Economics.

Volume (Year): 17 (1988)
Issue (Month): 1 (April)

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Handle: RePEc:ags:nejare:29069
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  1. Quinn, William & Wasserman, Walter, 1983. "The Dairyman's Guide to Milk Marketing," EB Series 185767, Cornell University, Department of Applied Economics and Management.
  2. Kaiser, Harry M., 1986. "A Primer on Federal Milk Marketing Orders in the United States," EB Series 185849, Cornell University, Department of Applied Economics and Management.
  3. Richard J. H. Caine & D. Peter Stonehouse, 1983. "Adjusting the Seasonality of Milk Shipments in Canada: Problems, Economic Impacts and Potential Policies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(3), pages 331-350, November.
  4. Hall, Seth C. & Oltenacu, Pascal A. & Milligan, Robert A., 1987. "Returns to Dairy Producers Under Different Seasonal Production Patterns," Research Bulletins 183664, Cornell University, Department of Applied Economics and Management.
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