Interregional Analysis of Federal Milk Marketing Order Reform Proposals: Results From the UW-Madison Dairy Interregional Competition Model (IRCM95)

Agricultural and Food Policy, Livestock Production/Industries, Marketing,

ESTIMATION OF A U.S. DAIRY SECTOR MODEL BY MAXIMUM SIMULATED LIKELIHOOD

This paper estimates a multivariate tobit system of monthly wholesale dairy prices where 4 prices are lower censored by the dairy price support program. Using Maximum Simulated Likelihood (MSL) we test/correct for the effects of simulation noise and present two tests for estimating multivariate versus the singel tobit equations.Demand and Price Analysis, Research Methods/ Statistical Methods,

An Economic Analysis of the Impacts of Trade Liberalization on Asian Dairy Market

The objective of this paper is to develop an economic analysis of the impacts of further trade liberalization on Asian dairy markets. In order to achieve this, we first make a review of Asian dairy policies from the perspective of domestic support, market access and export subsidy. Then a world dairy model is employed, which reflects both vertical and spatial characteristics of the world dairy sector. We analyze the separate and combined impacts of eliminating Japan's domestic dairy subsidy, removing other Asian countries dairy trade policies excluding Japan, eliminating all Asian countries domestic dairy and trade policies, and multilateral dairy trade liberalization around the world. We find that Japan and Korea's producers will suffer much bigger losses from trade liberalization than other countries in the region; Japan and Korea's producers get much more protection from trade distortions than from domestic subsidy; India is a potential competitive exporter in Asia and the world; China is a potential importer in Asia but a potential competitive exporter in the world; South East Asia and other South Asian countries are potential importers in Asia and the world; greater trade liberalization around the world will help to increase exports for potential exporters and/or ease importing pressure for potential importers; the order of competitiveness of Asian economies from least competitive to most competitive is Japan, Korea, South East Asia, other South Asia, China and India; China and India consumers will lose from world trade liberalization, but the other countries consumer surplus will increase.

ANALYSIS OF RECENT OPTIONS FOR CHANGES IN U.S. DAIRY POLICY

Agricultural and Food Policy,

Strategic Implications of Retail Pricing in the U.S. Fluid Milk Market

We explore brand level strategic interactions between skim/low fat and whole milk brands by estimating detailed price elasticity matrix using quadratic almost ideal demand system for eight major U.S. cities. Results of our analysis suggest that the market and demand behavior of skim/low fat and whole milk brands are different. Demand for skim/low fat milk is more elastic than in the case of whole milk. Highly inelastic demand for large number of Private label whole milk brands suggests 'loss leader' pricing strategy by the retailers. Such pricing strategy does not seem to be the norm in skim/low fat milk market.Agribusiness,

INTERREGIONAL ANALYSIS OF THE IMPACTS OF DEREGULATION ON U.S. DAIRY SECTOR

The late 1990's is a period of substantive change in U.S. dairy policy with respect to import quotas, export subsidies, and classified pricing under state and federal milk marketing orders. An interregional model of the U.S. dairy sector is used to provide quantitative measures of the regional impacts of alternative deregulation scenarios.Agricultural and Food Policy, Livestock Production/Industries,

Interregional Analysis of Interstate Dairy Compacts

Livestock Production/Industries, Marketing,

Nonparametric measures of the impact of public research expenditures on Australian broadacre agriculture

Nonparametric methods are used to measure the impact of public research expenditures on Australian broadacre agriculture over the 1953–94 period. Results using both unrestricted and 30‐year lagged specifications of the research impacts on productivity suggest that while certain aspects of the nonparametric multi‐input/output technologies are quite robust to alternative specifications (in particular, the associated Malmquist total factor productivity indexes), other aspects are less stable (in particular, the indexes on input and, to a lesser extent, output biased technical change). Internal rates of return to research expenditures on Australian broadacre agriculture are estimated to be in the 12 per cent to 20 per cent range.Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,

HOUSEHOLD DEMAND FOR FRESH POTATOES: A DISAGGREGATED CROSS-SECTIONAL ANALYSIS

A model of household fresh potato consumption incorporating prices, income, family size and other socioeconomic effects is estimated by maximum likelihood Tobit procedures. The effects of truncation bias due to non-purchasing households are evaluated and decompositions of the Tobit elasticities are performed for various sub-groups of the data. The market development implications of this type of disaggregated commodity analysis are explored.Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,