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A Model of Milk Production and Disposition: Supply, Utilization, and Government Support in the Dairy Sector

Published online by Cambridge University Press:  07 July 2020

David H. Harrington
David H. Harrington*
Affiliation:
ERS-FPED-USDA, Stationed at Purdue University
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Extract

In this paper I will present a model of milk production and disposition which has been used with great success in analyzing the effects of alternative levels of price support on the dairy sector. The purposes of the model are twofold: (1) to generate short-run predictive estimates of milk production, consumption by major product groupings, government support purchases, and farm level gross income from sale of dairy products; (2) to provide a facility for analysis of alternative support prices, or other policy instruments. It is one of a collection of models of the dairy industry being developed by Farm Production Economics Division at Purdue University. This particular model serves a central role since it forms both the linkage from the reported aggregate statistics to a series of regional production models and also the linkage from a model of the current institutional framework to models which can analyze alternative institutional frameworks (e.g., spatial equilibrium or competitive position models). Primary emphasis will be on the model but representative results will be presented to show validity and possible uses of the model.

Type
Agricultural Production and Land Use
Information
Journal of the Northeastern Agricultural Economics Council , Volume 1 , October 1972 , pp. 158 - 170
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

1/

Journal Paper Number 4785, Purdue University Agricultural Experiment Station

References

1 Bullion, G. W. M., Estimation of Regional Retail Demand Elasticities for Whole Milk, United States, 1962-63, 1966, 1961-1968, unpublished Ph.D. thesis, Purdue University, June 1970.Google Scholar
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