Measuring Producers' Advantage from Classified Pricing of Milk

Dae Hee Song and M. C. Hallberg

American Journal of Agricultural Economics, 1982, vol. 64, issue 1, 1-7

Abstract: A method of assessing the degree to which classified pricing of milk has favored milk producers over time is outlined, and results of an application of this method to the 1960–79 period are presented. It is found that prices for the different use classes of milk have, over this period, moved closer to consumer "optimal" prices rather than to producer "optimal" prices. Apparently the regulatory authorities in recent years have recognized less the need for farm income enhancement than the voice of consumer representatives.

Date: 1982
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