Hostname: page-component-586b7cd67f-t7fkt Total loading time: 0 Render date: 2024-11-23T21:35:44.877Z Has data issue: false hasContentIssue false
  • English
  • Français

Regional Gains and Losses for Consumers and Producers from Changes in Fluid Milk Prices*

Published online by Cambridge University Press:  28 April 2015

Leo V. Blakley  and
John B. Riley
Leo V. Blakley
Affiliation:
Oklahoma State University
John B. Riley
Affiliation:
Kansas State University
Get access Rights & Permissions [Opens in a new window]

Extract

Equilibrium in a free market can result in prices and quantities which maximize society welfare for a given resource distribution. Departures from equilibrium of the competitive model will involve changes in net social gains and losses not only for the national economy as an aggregate, but also for particular groups or regions. The trade-offs between groups or regions, in fact, may be much larger than the aggregate changes averaged over all groups.

Departures from equilibrium under restricted pricing conditions, such as exist with the federal order marketing system in the fluid milk industry, also will involve social gains and losses on national, regional, and local levels. Given the rapid decline in Grade B or manufacturing grade milk production, the concern about equity, and the evolution of new institutions in the milk market, conditions affecting equilibrium in the fluid milk industry also must change. The nature of these changes can have marked effects on the benefits received by the participants in the industry.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 6 , Issue 2 , December 1974 , pp. 1 - 8
Copyright
Copyright © Southern Agricultural Economics Association 1974

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Oklahoma State University Agricultural Experiment Station Journal Article No. 2853.

References

[1]Blakley, Leo V. “Price Discrimination: Good or Bad for Dairy Market Development?” Proceedings of the Eighth National Symposium on Dairy Market Development, pp. 26–40. Chicago, American Diary Association, Nov. 9-10, 1970.Google Scholar
[2]Bullion, G.W.M. “Estimation of Regional Retail Demand Elasticities For Whole Milk” Unpublished Ph.D. thesis, Purdue University, 1970.Google Scholar
[3]Carmen, Hoy F., and Youde, James G. “Alternative Tax Treatment of Orchard Development Costs: Impacts on Producers, Middlemen, and Consumers” American Journal of Agricultural Economics, 55:184–191, May 1973.CrossRefGoogle Scholar
[4]Christ, Paul G. “Government Constraints on the Dairy Industry System.” Remarks prepared for workshop on Dairy Industry Systems Analytic Model, Dulles Airport Marriott Hotel, April 24-25, 1973.Google Scholar
[5]Harrington, David H. “A Model of Milk Production and Distribution: Supply, Utilization and Government Support in the Dairy Sector.” Purdue University Agricultural Experiment Station Journal Article No. 4785, in cooperation with ERS-FPED-USDA, (Mimeograph) 1973.Google Scholar
[6]Hurt, Verner G. “A Revision of Reactive Programming.” Dept. of Agricultural Economics, Mississippi State University (Mimeograph), Dec. 1972.Google Scholar
[7]Orval, Kerchner.. Costs of Transporting Bulk and Packaged Milk by Truck. Marketing Research Report No. 791. Washington, D.C.: U.S. Dept. of Agriculture, Economic Research Service, May 1967.Google Scholar
[8]King, Richard A. “Discussion.” American Journal of Agricultural Economics, Vol. 54, No. 5, pp. 815–816, Dec. 1972.CrossRefGoogle Scholar
[9]Knight, Frank H. “Realism and Relevance in the Theory of Demand” Journal of Political Economics, 52: 289–318, Dec. 1944.CrossRefGoogle Scholar
[10]Marvin, Kottke. Production of Milk Supply, Demand and Price in the Northeast. An Application of a Multistage Allocation Model. Connecticut Agricultural Experiment Station Bulletin 416, May 1971.Google Scholar
[11]Manchester, Alden C.Pricing Milk and Dairy Products - Principles, Practices and Problems. Agricultural Economic Report No. 207. Washington, D.C.: U.S. Dept. of Agriculture, Economic Research Service, June 1971.Google Scholar
[12]Manchester, Alden C.The Structure of Fluid Milk Markets: Two Decades of Changes. Agricultural Economic Report No. 137. Washington, D.C.: U.S. Dept. of Agriculture, Economic Research Service, July 1968.Google Scholar
[13]Robert, Raunikar, and Purcell, Joseph C.. Trends in the Milk Market. University of Georgia Agricultural Experiment Station Research Report No. 139, July 1972.Google Scholar
[14]Robert, Raunikar; Purcell, Joseph C., and Elrod, J. C.. Spatial and Temporal Aspects of the Demand for Food in the United States: I. Fluid Milk. University of Georgia Agricultural Experiment Station Research Bulletin 61, June 1969.Google Scholar
[15]Riley, John B. “Equilibrium in the Fluid Milk Industry Under Alternative Pricing Policies and Structural Changes, 1972–1976” unpublished Ph.D. thesis, Oklahoma State University, 1974.Google Scholar
[16]Tramel, Thomas E., and Seale, A. D. Sr. “Reactive Programming of Supply and Demand Relations-Applications to Fresh Vegetables” Journal of Farm Economics, Vol. XLI, No. 5, pp. 1012–1022, Dec. 1959.CrossRefGoogle Scholar
[17]Luther, Tweeten. Foundations of Farm Policy. Lincoln: University of Nebraska Press, 1970, Ch. 16.Google Scholar
[18]Tweeten, Luther G., and Tyner, Fred H.. “The Utility Concept of Net Social Cost-A Criterion for Public Policy.” Agricultural Economics Research, 18:33–42, April 1966.Google Scholar