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Seasonality of Class I Price Differential Estimates for the Southeastern United States

Published online by Cambridge University Press:  12 June 2017

Carlos E. Testuri ,
Richard L. Kilmer  and
Thomas Spreen
Carlos E. Testuri
Affiliation:
Dairy and Poultry Science Department at the , University of Florida
Richard L. Kilmer
Affiliation:
Food and Resource Economics Department at the, University of Florida
Thomas Spreen
Affiliation:
Food and Resource Economics Department at the, University of Florida
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Abstract

This study provides insight into the seasonality of Class I price differentials in the southeastern dairy industry. This is accomplished by analyzing monthly estimates of Class I price differentials obtained from the imputed price solution or dual solution of a generalized capacitated minimum cost network flow model of the dairy industry. A smooth seasonal pattern emerges through the monthly sequence with the lowest and highest estimated Class I price differentials occurring in April and September respectively. Miami and Jacksonville areas reach $ 5.40 and $ 4.36 per hundredweight in April and $ 6.79 and $ 5.53 per hundredweight in September.

Keywords

dairySoutheastClass I differentialsnetwork flow modelpricingmarketing
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 3 , December 2001 , pp. 591 - 604
Copyright
Copyright © Southern Agricultural Economics Association 2001

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