Milk Marketing Orders And Milk Sanitation Regulation: Re-Evaulating Marketing Orders' Welfare Effects
This research shows that the existing literature on milk marketing orders misses an important effect. Previous work ignores the interaction of marketing orders with milk grading regulation. We model this interaction and show that producer benefits from marketing orders have been smaller than previous work suggests, and, under some conditions, may even be negative. Additional costs of producing fluid grade milk, omitted from previous welfare analyses, reduce producer benefits from marketing orders. Estimates of the additional cost indicate that this previously unmeasured effect is a significant component of the total welfare effect of marketing orders. An econometric model is developed to explain the variation in the fluid grade share of milk across states and time as a function of marketing order policy. Regression results support the hypothesis that marketing orders have encouraged the shift towards production of fluid-grade milk.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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, 06.
- Johnson, Stanley R. & Stonehouse, D. Peter & Hassan, Zuhair A., 1992. "Market Demand for Dairy Products," Staff General Research Papers Archive 575, Iowa State University, Department of Economics.
- Daniel A. Sumner & Christopher A. Wolf, 1996. "Quotas without Supply Control: Effects of Dairy Quota Policy in California," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 354-366.
- Thomas L. Cox & Jean-Paul Chavas, 2001. "An Interregional Analysis of Price Discrimination and Domestic Policy Reform in the U.S. Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 89-106.
- Ippolito, Richard A & Masson, Robert T, 1978. "The Social Cost of Government Regulation of Milk," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 33-65, April.
- Kaiser, Harry M. & Morehart, Mitchell J., 1994. "A Regional Comparison Of Farm Costs And Returns Among Top Dairy Producers," Staff Papers 13647, University of Minnesota, Department of Applied Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea04:20399. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.