Testimony on the Impact of the Northeast Dairy Compact and Market Channel Pricing Strategies on the Performance of the New England Dairy Industry

Ronald Cotterill

No 169381, Issue Papers from University of Connecticut, Food Marketing Policy Center

Abstract: Using recently obtained data on cooperative premiums that give us a more direct estimate of the actual prices paid by processors for raw milk in New England, we have recalculated our impact models. The Northeast Dairy Compact’s impact on consumers, computed net of changes in cooperative premiums engendered by Compact implementation, is 2.7 cents per gallon. In our original study it was 4.5 cents per gallon. The difference is due to a reduction of 1.8 cents per gallon in cooperative premiums. This reduction occurred because cooperatives deferred to the Compact, eliminated power premiums, and charged only for the cost of actual services provided to milk processors.

Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 33
Date: 2001-07
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucofmi:169381

DOI: 10.22004/ag.econ.169381

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