LD2668 .T4 1949 R5 / Master of Science

Since this study is largely an analytical appraisal, its purpose is not to solve any specific problem of fluid milk marketing, but to bring into focus problems that warrant a detailed and objective analysis. The procedure followed was divided into two parts. The first phase involves a review of the literature related to the regulation and control of the production, distribution and pricing of milk. Secondly, a study of the Lynchburg, Virginia milk market was made to determine the problems that have been encountered in this particular market. In addition, some appraisal is made of the role the control program has played in the production, distribution and pricing of milk in this market. / M.S.

The continuous upward pressure of costs is forcing Virginia dairy farmers to adjust their operations in order to meet changing economic conditions, and to maintain acceptable income levels. The individual milk producer has little or no control over the price he receives for his product, whereas he does have considerable control over his costs of production. Efforts to reduce costs often offer the most practical method of improving net income levels. The objectives of this study were to identify those factors that are associated with variation in costs of producing a unit of milk output, and to estimate the individual effects of these variables on costs. Cost and other production data from 39 Grade A dairy farms for a five-year period, 1963-67, were obtained from the V.P.I. Farm Accounts System files. The average sample farm had 48 dairy cows, 2.5 full-time man equivalents of labor, $53,748 average investment, and 238 acres of crop and pasture land. The multiple regression procedure was used to determine the importance of each independent variable used in the study. Both linear and quadratic functions were used. The dependent variable was average total cost of producing a hundredweight of milk, and independent variables were those which were hypothesized to affect average total costs. Eight variables associated with variation in average costs of producing a hundredweight of milk were identified, and the effect of each on costs was estimated. / Master of Science

Master of Science

The purpose of this thesis is to study the effect of lower milk support prices trigger ed by chronic surplus production problems and to offer alter native management strategies for dairymen caught in the cash flow squeeze precipitated by resulting cuts in the producer price of milk. Historical dairy policy is reviewed and recommendations are offered for consideration in developing dairy policy over the next decade. FLIPSIM V, a powerful, firm-level computerized simulation model is employed to predict the probable outcome of employing alternative management strategies designed to improve profitability for individual dairymen. The study focuses on a typical farm devised from survey data to be representative of Utah's dairy industry. A five-year planning horizon is simulated.

The impacts of tariffication on Canadian milk producers were estimated via supply, price and trade flow parameters using a spatial price equilibrium model applied to milk production regions of Canada and the United States. / Two price scenarios were put forward because of supply management in Canada. The first incorporated producer prices while the second used shadow prices for Canadian producers, defined as the producer price less a reduction in price which accounts for the value of production quota. The hypothesis that tariffication reduces milk production in Canada to the extent that U.S. producers increase their exports to Canada was partly supported in scenario one but not in scenario two. Specific tariffs of $11.00/hl prevented U.S. imports to reach Qu 'ebec and Ontario. However, the rest of Canada increased its imports from Great Lakes to the detriment of Quebec and Ontario. Consequently, production decreased slightly in Qu 'ebec and increased in Ontario, whereas prices decreased significantly in both provinces. Scenario two showed ability of Qu 'ebec and Ontario to withstand American competition. Prices and production level remained unchanged while export flows to the rest of Canada increased to the detriment of the Great Lakes. / The present study investigated only a specific aspect of the tariffication proposal in the GATT and does not intend not to reflect the very complex aspects of GATT negotiations. The findings of this analysis must be interpreted with this caveat. Further studies considering other plausible tariffication scenarios or effective tariffs on an individual dairy product basis would broaden our understanding of the potential implications of tariffication.

This study has compared the effect of milk pricing systems on the selection goals of dairy producers in two provinces of Canada, British Columbia (BC), and Quebec. These provinces were chosen for comparison as BC produces milk largely for a fluid market, while Quebec produces milk for a manufacturing market. Within BC, due to a higher utilization and higher milk price, the value/kg of skim on Vancouver Island was higher than that of the Vancouver Lower Mainland over the study period 1963-1982. Between the two provinces, the value/kg of skim in BC was found to be consistently higher than in Quebec over the 20 year period, while the value of fat was higher in Quebec than BC. In BC in 1980, the value of a kilogram of skim was approximately $0.30, whereas its value in Quebec was only $0.20. During the 1960s in BC, the value of skim represented one half the value of milk, and in 1982 it comprised two thirds of the value of milk, as compared to Quebec, where fat represented 43% of the value of milk. Net economic values were calculated by subtracting the dollar cost of production associated with the components of milk (carrier, fat and protein), from the gross value/kg of skim and fat. These values showed that the value/kg of protein was negative and decreasing in both BC and Quebec. The economic value/kg of butterfat has been consistently positive and increasing over the study period in BC and Quebec to $3.27 and $3.34/kg respectively in 1982. The relative economic values of carrier, fat and protein in BC and Quebec in 1982 were 0.08:1.00:-0.10 and 0.06:1.00:-0.12 respectively, which puts moderate selection on carrier and fat, and negative selection on protein. Selection index weights for carrier, fat and protein revealed that the BC dairy industry has always applied positive selection to the carrier and fat portion, and negative selection to the protein portion of milk. In 1982 the selection weights were 0.087:1.253:-1.189. The Quebec index has shown more fluctuation that BC, with less selection against solids compared to BC; (0.050:1.280:-0.657). Theoretical genetic goals of the BC dairy industry have been consistent at approximately 3.0% butterfat, 2.0% protein and 95.0% carrier. The genetic goals in Quebec have undergone wide fluctuations, but generally have signalled the dairy producer to increase both butterfat and protein. The goals of the two industries are now very similar, with the exception that Quebec continues to place higher value on solids than BC. / Land and Food Systems, Faculty of / Graduate

No description available.

No description available.

The U.S. dairy industry is heavily regulated. The federal government established the first milk regulation under the Agricultural Adjustment Act in 1933. Subsequently, Congress passed the Act of 1935, the Agricultural Marketing Agreement Act of 1937, and the Agricultural Act in 1949. The 1937 and 1949 pieces of legislation have been the basis for milk regulation until now. The federal government regulates the dairy industry by two programs: (1) the federal milk marketing order program, and (2) the federal price support program. These two programs regulate prices received by farmers. Some states also regulate retail prices for milk. This paper examines the retail milk markets in three areas: (1) the impact of government milk regulation on retail prices for both fluid and manufacturing milk; (2) the impact of government milk regulation on consumers’ surplus, producers' surplus, and deadweight loss; and (3) the support prices for surplus manufacturing milk. It was found that government dairy regulation tends to contribute to: (1) providing market stability in terms of minimum price variability and sufficient milk supply for consumers; and (2) guaranteeing high and uniform income for dairy farmers. These benefits, however, are at the expense of the consumers and taxpayers who are paying higher than pure competitive prices for all milk products. Some welfare transfer from the taxpayers to social programs is taking place under current government regulation. Net consumers' surplus is uncertain. This thesis provides evidence which supports aspects of both the capture theory and market failure theory of the dairy industry in the United States. / Master of Arts