Estimating Market Power of U.S. Dairy Cooperatives in the Fluid Milk Market

2012 ◽  
Vol 94 (3) ◽  
pp. 647-658 ◽  
Author(s):  
Metin Cakir ◽  
Joseph V. Balagtas
Keyword(s):  
Market Power ◽  
Dairy Cooperatives ◽  
Milk Market ◽  
Fluid Milk

scholarly journals Using threshold co-integration to estimate asymmetric price transmission in the Turkish milk market

New Medit ◽  
2021 ◽  
Vol 20 (1) ◽  
Author(s):  
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Raw Milk ◽  
Price Transmission ◽  
Oligopolistic Market ◽  
Long Run ◽  
Marketing Costs ◽  
Milk Market ◽  
Oligopolistic Market Structure ◽  
Fluid Milk

We investigate the price dynamics between retail milk price and raw milk price in the Turkish fluid milk market. The study uses monthly fluid milk prices for 14 years between January 2003 and December 2016. We analyze the price adjustment in the fluid milk market through an asymmetric error correction model with threshold co-integration. We find that the transmission between the two prices has been asymmetric in both the long term and short term period. Differences between the farm milk prices and retail milk prices may exist due to marketing costs across the supply chain and pricing policies associated with the market structure. Results of the long-run analysis indicate a significant market power in the fluid milk market. Therefore, in this asymmetric case, the deviations are likely to be the reason for the market power of the processors/retailers and the reason for the oligopolistic market structure in the sector.

scholarly journals Regional Gains and Losses for Consumers and Producers from Changes in Fluid Milk Prices

1974 ◽  
Vol 6 (2) ◽  
pp. 1-8
Author(s):  
Leo V. Blakley ◽  
John B. Riley
Keyword(s):  
Free Market ◽  
Rapid Decline ◽  
Trade Offs ◽  
Competitive Model ◽  
Milk Industry ◽  
New Institutions ◽  
Gains And Losses ◽  
Milk Market ◽  
Local Levels ◽  
Fluid Milk

Equilibrium in a free market can result in prices and quantities which maximize society welfare for a given resource distribution. Departures from equilibrium of the competitive model will involve changes in net social gains and losses not only for the national economy as an aggregate, but also for particular groups or regions. The trade-offs between groups or regions, in fact, may be much larger than the aggregate changes averaged over all groups.Departures from equilibrium under restricted pricing conditions, such as exist with the federal order marketing system in the fluid milk industry, also will involve social gains and losses on national, regional, and local levels. Given the rapid decline in Grade B or manufacturing grade milk production, the concern about equity, and the evolution of new institutions in the milk market, conditions affecting equilibrium in the fluid milk industry also must change. The nature of these changes can have marked effects on the benefits received by the participants in the industry.

scholarly journals Do Voluntary Biotechnology Labels Matter to the Consumer? Evidence from the Fluid Milk Market

2005 ◽  
Vol 87 (2) ◽  
pp. 378-392 ◽  
Author(s):  
Kristin Kiesel ◽  
David Buschena ◽  
Vincent Smith
Keyword(s):  
Milk Market ◽  
Fluid Milk

scholarly journals Modeling Advertising Carryover in Fluid Milk: Comparison of Alternative Lag Specifications

1993 ◽  
Vol 22 (1) ◽  
pp. 10-19 ◽  
Author(s):  
Meenakshi Venkateswaran ◽  
Henry W. Kinnucan ◽  
Hui-Shung Chang
Keyword(s):  
New York ◽  
New York City ◽  
Mean Square Error ◽  
Root Mean Square ◽  
York City ◽  
Mean Square ◽  
Market Data ◽  
Percent Error ◽  
Milk Market ◽  
Fluid Milk

The performance of restricted estimators such as Almon and Shiller in modeling advertising carryover is tested and compared to the unrestricted OLS estimator, using 1971–1988 monthly New York City fluid milk market data. Results indicate that in the absence of autocorrelation and multicollinearity among the lagged advertising variables, the unrestricted OLS estimator is still the preferred estimator, based on Mean Square Error and Root Mean Square Percent Error criteria. In this case, the Almon and Shiller estimators perform equally well, although next only to the OLS estimator. In the presence of autocorrelation or multicollinearity however, the restricted estimators may outperform the OLS estimator, in a MSE sense, with the flexible Shiller estimator (which subsumes the Almon) being more desirable.

scholarly journals Oligopoly and Price Transmission in Turkey's Fluid Milk Market

Agribusiness ◽  
2013 ◽  
Vol 29 (3) ◽  
pp. 293-305 ◽  
Author(s):  
Hasan Tekgüç
Keyword(s):  
Price Transmission ◽  
Milk Market ◽  
Fluid Milk

scholarly journals Handling and marketing of dairy products in and around Bahir Dar Milkshed Areas, Ethiopia

2018 ◽  
Vol 2 (2) ◽  
pp. 48-58
Author(s):  
TILAHUN SISAY ◽  
KEFYALEW ALEMAYEHU ◽  
MOLLA HAILE
Keyword(s):  
Dairy Products ◽  
Skim Milk ◽  
Bahir Dar ◽  
Low Fat ◽  
Milk Products ◽  
Fresh State ◽  
Pass Through ◽  
Dairy Cooperatives ◽  
Milk Market

Sisay T, Alemayehu K, Haile M. 2018. Handling and marketing of dairy products in and around Bahir Dar Milkshed Areas, Ethiopia. Trop Drylands 2: 48-58. This study was conducted to assess handling, processing and marketing of milk and milk products using 180 sample households in the formal survey with a pre-tested structured questionnaire. Market channels and chains of milk and milk products were described using market data from sample households, key informants and sale records. Overall, 45.6% of the sample households supplied milk for market with the highest in Bahir Dar City, followed by Tis Abay and lowest proportion was at Sebatamit rural kebele. Overall, the average amount of milk daily supplied to market was 6.6 liters/household and the figure at Bahir Dar City, Sebatamit and Tis Abay rural kebeles were 9.7, 5.6 and 2.33 liters, respectively. Daily milk delivered through cooperative and other sale outlets as farm gate, customers` gate on delivery system and farm shop. Season, location and interaction of these factors had highly significant (P ≤ 0.01) effect on volume of milk monthly collected at cooperatives. Different market channels, outlets, and agents identified for various dairy products; butter being with the longest channel, followed by marketing of milk and low-fat milk/ semi-skim milk to pass through about three channels. Milk supplied to market, generally constrained by feed shortage, lack of improved breed, unreliable milk market, unattractive price and producers` limited awareness. Dairy cooperatives generally, create milk market outlet and supplied various processed milk products to market; of which low-fat milk (semi-skim milk) is sold in its fresh state which might be used as a less expensive product. Hence, to the paramount role of the cooperatives in the area strengthening the linkage between producers and consumers, which in turn provide reliable milk market and benefit producers from market opportunity of dairying, the constraints limiting the supply of marketable milk need to be addressed.

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