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U.S. Dairy Industry Supply Control: Managing the Cooperatives Working Together Program

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  • John Siebert
  • Conrad Lyford

Abstract

One common approach many agricultural industries have pursued is supply control to balance supply and demand. For this purpose, U.S. dairy farmers have developed the Cooperatives Working Together (CWT) program. To achieve a supply control objective, CWT reduces cow numbers and funds dairy product exports. This case focuses student understanding on program effectiveness in light of changing dairy economic conditions. Students can be challenged to understand how supply removal impacts price through applying elasticity estimates. An appendix, designed for case teachers, is available at Ag Econ Search, http://ageconsearch.umn.edu.

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  • John Siebert & Conrad Lyford, 2009. "U.S. Dairy Industry Supply Control: Managing the Cooperatives Working Together Program," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 999-1013.
    • Handle: RePEc:oup:revage:v:31:y:2009:i:4:p:999-1013.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2009.01476.x
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    References listed on IDEAS

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    1. Blisard, Noel & Blayney, Donald P. & Chandran, Ram & Allshouse, Jane E., 1999. "Analyses of Generic Dairy Advertising, 1984-97," Technical Bulletins 33554, United States Department of Agriculture, Economic Research Service.
    2. Tellioglu, Isin & Bailey, Kenneth W. & Blandford, David, 2007. "Implicit Tariffs on Imported Dairy Product Components in the United States," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 8(1), pages 1-13.
    3. Herndon, Cary W., Jr. & Looney, John Mark, Jr., 2008. "Does the MILC program Affect Milk Supply Response in Individual States of the United States?," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6782, Southern Agricultural Economics Association.
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    Cited by:

    1. Bolotova, Yuliya, 2020. "The Price Effects of Milk Supply Control in the U.S. Dairy Industry," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304209, Agricultural and Applied Economics Association.
    2. Bolotova, Yuliya V., 2022. "Market Power in the U.S. Dairy Industry," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322754, Agricultural and Applied Economics Association.
    3. Bolotova, Yulia V., 2023. "Market Power in the U.S. Dairy Industry," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 5(2), March.
    4. Bolotova, Yuliya, 2023. "Farm Milk Pricing and Seller Market Power in the U.S. Dairy Industry," 2023 Annual Meeting, July 23-25, Washington D.C. 335471, Agricultural and Applied Economics Association.
    5. Yuliya V. Bolotova, 2016. "Agricultural Supply Management and Market Power: Evidence from the U.S. Dairy and Potato Industries," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 563-568, November.

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