Product Quality In The Canadian Dairy Industry
Supply management has been shown to increase the price of milk. Technological change has induced (and allowed) processors to substitute alternative inputs, many of which can be imported tariff-free, for the traditional ingredients to lower costs and maximize profit. Meanwhile, there has been a great deal of consolidation in the dairy processing industry. We analyse the effect of these trends on cheese quality by measuring the increase in casein imports. Results suggest that supply management is negatively affecting cheese quality, by increasing casein imports due to the higher milk price. Furthermore, we were able to calculate that approximately 9.8% of specialty cheese is produced used casein. A 22% ad valorem tariff is needed to drive casein imports down to zero.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: 2053 Main Mall, Vancouver, BC V6T 1Z2|
Web page: http://www.landfood.ubc.ca/fre/
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.:
- Ishikawa, Jota & Spencer, Barbara J., 1999.
"Rent-shifting export subsidies with an imported intermediate product,"
Journal of International Economics,
Elsevier, vol. 48(2), pages 199-232, August.
- Jota Ishikawa & Barbara J. Spencer, 1996. "Rent-Shifting Export Subsidies with an Imported Intermediate Product," NBER Working Papers 5458, National Bureau of Economic Research, Inc.
- Acharyya, Rajat, 1998. "Monopoly and product quality: Separating or pooling menu?," Economics Letters, Elsevier, vol. 61(2), pages 187-194, November.
- L. Lambertini, 1998. "Does Monopoly Undersupply Product Quality?," Working Papers 317, Dipartimento Scienze Economiche, Universita' di Bologna.
- Timothy J. Richards & Scott R. Jeffrey, 1997. "The Effect of Supply Management on Herd Size in Alberta Dairy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 555-565.
- Beath,John & Katsoulacos,Yannis, 1991.
"The Economic Theory of Product Differentiation,"
Cambridge University Press, number 9780521335522, December.
- Timothy J. Richards, 1996. "The Effect of Supply Management on Dairy Productivity," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 458-62, April.
- Andrew Schmitz & Troy G. Schmitz, 1994. "Supply Management: The Past and Future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(2), pages 125-148, 07.
- Karl Meilke & Rakhal Sarker & Danny Roy, 1998. "The Potential for Increased Trade in Milk and Dairy Products between Canada and the United States under Trade Liberalization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(2), pages 149-169, 07.
When requesting a correction, please mention this item's handle: RePEc:ags:ubcwps:15844. 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.