scholarly journals YIELD UNCERTAINTY AND MILK SUPPLY RESPONSE IN TWO-TIER PRICE SYSTEMS

2017 ◽  
Vol 49 (1) ◽  
pp. 66-82
Author(s):  
DANIEL MULUWORK ATSBEHA
Keyword(s):  
Dairy Farms ◽  
Relative Importance ◽  
Milk Supply ◽  
Price Changes ◽  
Supply Response ◽  
Excess Production ◽  
Multiple Input ◽  
Yield Uncertainty ◽  
Milk Market

AbstractIn two-tier price systems, yield uncertainty creates incentives to overproduce quantity-restricted outputs even when prices for surplus output are very low. These incentives arise from precautionary motives against expected losses from quota shortfalls. Using an approach augmented for multiple input applications, the likelihood of excess production and the relative importance of price changes in different markets are estimated for Icelandic dairy farms. The results indicate that the average farm plans to exceed its quota, and price changes in the surplus milk market are approximately three times more effective in generating supply response than price changes in the quota milk market.

Decomposition of Milk Supply Response into Technology and Price‐Induced Effects

1990 ◽  
Vol 72 (4) ◽  
pp. 864-872 ◽  
Author(s):  
Don P. Blayney ◽  
Ron C. Mittelhammer
Keyword(s):  
Milk Supply ◽  
Supply Response

scholarly journals Milk Supply Response in Delaware

1980 ◽  
Vol 9 (1) ◽  
pp. 41-45 ◽  
Author(s):  
G. Joachim Elterich ◽  
Sharif Masud
Keyword(s):  
Milk Production ◽  
Negative Impact ◽  
Milk Supply ◽  
Supply Response ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Milk Cows ◽  
Short Run ◽  
Lag Model

Milk supply response by dairy farmers in Delaware was analyzed employing distributed lag price structures for number of milk cows and milk production per cow. A polynominal distributed lag model is fitted to quarterly data with deflated prices for the period 1966 to 1978. The variations in the number of milk cows is explained by about 98 percent. Farmers react positively to milk prices after 1–2 years, while wages and feed prices have a negative impact on cow numbers. Milk production per cow shows positive adjustments to milk prices after 6 to 15 months. Technology and feed prices influence also milk production While the short-run price elasticity of milk production is only .2, the long-run aggregate elasticity grows to 2.8 percent. Intermediate-run projections of milk supply were also performed with the model.

scholarly journals Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture

2011 ◽  
Vol 43 (2) ◽  
pp. 181-194 ◽  
Author(s):  
Yan Liang ◽  
J. Corey Miller ◽  
Ardian Harri ◽  
Keith H. Coble
Keyword(s):  
Crop Production ◽  
Price Changes ◽  
Supply Response ◽  
Supply Elasticity ◽  
Variable Nature ◽  
Yield Risk ◽  
Emerging Issues ◽  
Salient Features

In this paper we consider factors that affect both crop prices and yields in order to examine supply responses of major crops in the Southeast. Due to the variable nature of crop production in the Southeast, previous studies that ignore price and yield risk may fail to capture one of the salient features of the region's agriculture. Our results indicate supply elasticity values for corn, cotton, and soybeans of approximately 0.670, 0.506, and 0.195, respectively. Compared with the results of studies in other regions, corn and cotton acres respond more to price changes and soybean acres respond less to price changes.

scholarly journals PRODUCTION RESPONSE TO PRICES IN THE COCONUT INDUSTRY OF PAPUA NEW GUINEA: A COMMENT ON THE METHODOLOGY AND A RE ESTIMATION

CORD ◽  
1988 ◽  
Vol 4 (01) ◽  
pp. 34
Author(s):  
Premasiri J. Gunawardana
Keyword(s):  
Papua New Guinea ◽  
New Guinea ◽  
Price Changes ◽  
Supply Response ◽  
Analytical Studies ◽  
Production Response

Analytical studies on the supply response of growers in the major crop sectors in Papua New Guinea (PNG) are scarce. For this reason, De Silva, Kiele and Lagap (DKL, 1987) must be congratulated for their pioneering attempt at analysing the pro­duction response to changes in prices in the coconut sector of the country. However, in their analysis there are several short‑comings of a methodological and empirical nature. The purpose of this note is to highlight these shortcomings and offer altemative estima­tions and interpretations about the nature of production response to price changes in the coconut sector.  

Asymmetry in milk supply response

1984 ◽  
Vol 13 (1) ◽  
pp. 152-156 ◽  
Author(s):  
David Hallam
Keyword(s):  
Milk Supply ◽  
Supply Response
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