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Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data

Author

Listed:
  • Volpe, Richard III
  • Park, Timothy A.
  • Hennessy, David A.
  • Jensen, Helen H.

Abstract

We study the determinants of somatic cell count (SCC) for fluid milk among U.S. dairies. We synthesize much of the work that has been done to model SCC economically in order to identify the potential impacts of buyer-imposed penalties and incentives within the supply chain. Additionally we estimate quantile regression for count data to measure impacts specifically for those operations with the highest SCC and to account for the statistical properties of the data. Premiums in particular have the potential to reduce SCC considerably where it is currently the highest. We draw implications for profitability in relation to SCC reduction.

Suggested Citation

  • Volpe, Richard III & Park, Timothy A. & Hennessy, David A. & Jensen, Helen H., 2013. "Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151425, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:151425
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    References listed on IDEAS

    as
    1. Machado, Jose A.F. & Silva, J. M. C. Santos, 2005. "Quantiles for Counts," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 1226-1237, December.
    2. repec:oup:revage:v:31:y:2009:i:4:p:793-813. is not listed on IDEAS
    3. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, December.
    4. Greene, Catherine R. & Dimitri, Carolyn & Lin, Biing-Hwan & McBride, William D. & Oberholtzer, Lydia & Smith, Travis A., 2009. "Emerging Issues in the U.S. Organic Industry," Economic Information Bulletin 58617, United States Department of Agriculture, Economic Research Service.
    5. Daniel Muluwork Atsbeha & Dadi Kristofersson & Kyrre Rickertsen, 2012. "Animal Breeding and Productivity Growth of Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 996-1012.
    6. William D. McBride & Catherine Greene, 2009. "Costs of Organic Milk Production on U.S. Dairy Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 793-813.
    7. Richard Bennett & Jos IJpelaar, 2005. "Updated Estimates of the Costs Associated with Thirty Four Endemic Livestock Diseases in Great Britain: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 135-144.
    8. Richard Bennett, 2003. "The 'Direct Costs'of Livestock Disease: The Development of a System of Models for the Analysis of 30 Endemic Livestock Diseases in Great Britain," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 55-71.
    9. MacDonald, James M. & O'Donoghue, Erik J. & McBride, William D. & Nehring, Richard F. & Sandretto, Carmen L. & Mosheim, Roberto, 2007. "Profits, Costs, and the Changing Structure of Dairy Farming," Economic Research Report 6704, United States Department of Agriculture, Economic Research Service.
    10. D. F. Benoit & D. Van Den Poel, 2009. "Benefits of Quantile Regression for the Analysis of Customer Lifetime Value in a Contractual Setting: An Application in Financial Services," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/551, Ghent University, Faculty of Economics and Business Administration.
    11. Joseph V. Balagtas & Aaron Smith & Daniel A. Sumner, 2007. "Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 839-851.
    12. Wayne H. Howard & Ravinderpal Gill & Kenneth E. Leslie & Kerry Lissemore, 1991. "Monitoring and Controlling Mastitis on Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 299-318, July.
    13. Dong, Fengxia & Hennessy, David A. & Jensen, Helen H., 2012. "Factors determining milk quality and implications for production structure under somatic cell count standard modification," Staff General Research Papers Archive 35608, Iowa State University, Department of Economics.
    14. Alfonso Miranda, 2008. "Planned fertility and family background: a quantile regression for counts analysis," Journal of Population Economics, Springer;European Society for Population Economics, pages 67-81.
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    More about this item

    Keywords

    somatic cell counts; ARMS data; farm profitability; quantile regression; count data; Demand and Price Analysis; Research Methods/ Statistical Methods; Q16; Q12; C25; Q13;

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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