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Price And Quantity Effects Of Canada'S Dairy Adverstising Programs

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  • Kinnucan, Henry W.
  • Belleza, Evelyn T.

Abstract

An equilibrium-displacement model is combined with econometric estimates of key model parameters to identify the impacts of Canada's dairy advertising programs on prices and quantity. Results suggest increased advertising of fluid milk enhances the farm value of milk but has minimal effect on government costs of the dairy price-support program. Owing to government intervention in the butter market, increased butter advertising has no effect on the farm value of milk, at least in the short run, but is highly effective at reducing government costs. Advertising is most effective, ceteris paribus, in markets where retail demand and wholesale supply for the specific dairy product are relatively price inelastic.

Suggested Citation

  • Kinnucan, Henry W. & Belleza, Evelyn T., 1995. "Price And Quantity Effects Of Canada'S Dairy Adverstising Programs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(2), pages 1-12, October.
    • Handle: RePEc:ags:arerjl:31583
    DOI: 10.22004/ag.econ.31583
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    References listed on IDEAS

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    1. Henry W. Kinnucan & Olan D. Forker, 1987. "Asymmetry in Farm-Retail Price Transmission for Major Dairy Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 285-292.
    2. Ronald W. Ward & Bruce L. Dixon, 1989. "Effectiveness of Fluid Milk Advertising Since the Dairy and Tobacco Adjustment Act of 1983," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 730-740.
    3. Ellen W. Goddard & Alex K. Amuah, 1989. "The Demand for Canadian Fats and Oils: A Case Study of Advertising Effectiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 741-749.
    4. Nobuhiro Suzuki & Harry M. Kaiser & John E. Lenz & Olan D. Forker & Kohei Kobayashi, 1994. "Evaluating Generic Milk Promotion Effectiveness with an Imperfect Competition Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(2), pages 296-302.
    5. Meenakshi Venkateswaran & Henry W. Kinnucan, 1990. "Evaluating Fluid Milk Advertising in Ontario: The Importance of Functional Form," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 471-488, November.
    6. Henry Kinnucan, 1987. "Effect of Canadian Advertising on MilK Demand: The Case of the Buffalo, New York Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 35(1), pages 181-196, March.
    7. Henry W. Kinnucan & Cynda R. Clary, 1995. "Brand versus generic advertising: A conceptual framework with an application to cheese," Agribusiness, John Wiley & Sons, Ltd., vol. 11(4), pages 355-369.
    8. E.W. Goddard & A. Tielu, 1988. "Assessing the Effectiveness of Fluid Milk Advertising in Ontario," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(2), pages 261-278, July.
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    1. Xiao, Hui & Kinnucan, Henry W. & Kaiser, Harry M., 1998. "Advertising, Structural Change, And U.S. Non-Alcoholic Beverage Demand," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20885, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 261-267, January.
    3. Şişman, Muhammet Yunus, 2017. "An Economic Welfare Analysis Of Agricultural Subsidies And Inventory Holdings: An Application To The Hazelnut Industry1," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(4), October.

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