Title:Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States
Journal :American Journal of Agricultural Economics Volume 89 Issue 4 Page 839-851, November 2007 ;
Authors:Joseph V. Balagtas,Aaron Smith,and Daniel A Sumneer
1Joseph V. Balagtas is assistant professor, Department of Agricultural Economics, Purdue University. Aaron Smith is assistant professor, Department of Agricultural and Resource Economics, University of California, Davis. Daniel A. Sumner is Director, University of California Agricultural Issues Center and the Frank H. Buck, Jr. Professor, Department of Agricultural and Resource Economics, University of California, Davis. Sumner and Smith are also members of the Giannini Foundation.
The authors thank Julian Alston, the editor, Wally Thurman, and an anonymous referee for numerous constructive comments.
Abstract:
The share of raw milk meeting fluid quality (Grade A) standards in the United States rose steadily through the latter half of the twentieth century, but a shrinking portion of that was used in fluid products. Grade A milk exceeds the quality standards for the manufactured products for which it has been increasingly used. We present an econometric model that exploits regional and temporal variation in policy implementation to identify the effect of marketing orders on the Grade A share of milk. Results support the hypothesis that marketing orders significantly encouraged the growth in the Grade A share of milk.
Journal :American Journal of Agricultural Economics Volume 89 Issue 4 Page 839-851, November 2007 ;
Authors:Joseph V. Balagtas,Aaron Smith,and Daniel A Sumneer
1Joseph V. Balagtas is assistant professor, Department of Agricultural Economics, Purdue University. Aaron Smith is assistant professor, Department of Agricultural and Resource Economics, University of California, Davis. Daniel A. Sumner is Director, University of California Agricultural Issues Center and the Frank H. Buck, Jr. Professor, Department of Agricultural and Resource Economics, University of California, Davis. Sumner and Smith are also members of the Giannini Foundation.
The authors thank Julian Alston, the editor, Wally Thurman, and an anonymous referee for numerous constructive comments.
Abstract:
The share of raw milk meeting fluid quality (Grade A) standards in the United States rose steadily through the latter half of the twentieth century, but a shrinking portion of that was used in fluid products. Grade A milk exceeds the quality standards for the manufactured products for which it has been increasingly used. We present an econometric model that exploits regional and temporal variation in policy implementation to identify the effect of marketing orders on the Grade A share of milk. Results support the hypothesis that marketing orders significantly encouraged the growth in the Grade A share of milk.
