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Dairy Industry Policy


  • Freebairn, John W.


Current dairy industry policy facilitates discriminatory pricing of milk used for market milk, domestic manufactured products and for export products. A variant of the Parish model is used to estimate transfer and efficiency costs of these arrangements. Transfers from consumers to producers represent about a third of gross farm returns. Efficiency costs of too little consumption are small. Estimated costs of excess production are between $25 million and $65 million a year. The model suggests important changes to the way in which the Industry Commission calculates rates of assistance to the dairy industry.

Suggested Citation

  • Freebairn, John W., 1992. "Dairy Industry Policy," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(01), April.
  • Handle: RePEc:ags:remaae:12499

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    References listed on IDEAS

    1. Alston, Julian M. & Quilkey, John J., 1980. "Insurance Milk," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(03), December.
    2. R. M. Parish, 1962. "The Costs Of Protecting The Dairying Industry," The Economic Record, The Economic Society of Australia, vol. 38(82), pages 167-182, June.
    3. Hall, Nigel H. & Menz, Kenneth M., 1985. "Product Supply Elasticities for the Australian Broadacre Industries, Estimated with a Programming Model," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(01), April.
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    Cited by:

    1. Malcolm, Bill, 1994. "Australian Agricultural Policy Since 1992: New Emphases, Old Imperatives," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(02), August.
    2. Hill, D. J. & Piggott, R. R. & Griffith, G. R., 2001. "Profitability of incremental generic promotion of Australian dairy products," Agricultural Economics, Blackwell, vol. 26(3), pages 253-266, December.
    3. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1999. "Profitability Of Incremental Generic Promotion Expenditure By Australian Dairy Farmers," Working Papers 12913, University of New England, School of Economics.
    4. Rolf Jens Brunstad & Ivar Gaasland & Erling VĂ¥rdal, 2005. "Efficiency losses in milk marketing boards - the importance of exports," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 77-97.

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    Agricultural and Food Policy;


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