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The Effects Of Alternative Seasonal Price Differentials On Milk Production In New York

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  • Kaiser, Harry M.
  • Oltenacu, Pascal A.
  • Smith, Terry R.

Abstract

Uneven monthly milk production (seasonality) is a major problem in the New York dairy industry. This article estimates expected monthly milk production response to a set of hypothetical seasonal price differentials designed to reduce the degree of seasonality. The analysis is based on a random mail survey and farm record data. The results indicate that a seasonal price differential of $1.12 per cwt. (over three times the current differential) would be necessary to completely balance spring and fall production in New York, based on the perceptions of farmers surveyed. Also, producers with better managerial skills are shown to be able to reduce their seasonality at a significantly lower price differential than less skilled farm managers.

Suggested Citation

  • Kaiser, Harry M. & Oltenacu, Pascal A. & Smith, Terry R., 1988. "The Effects Of Alternative Seasonal Price Differentials On Milk Production In New York," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(1), pages 1-10, April.
    • Handle: RePEc:ags:nejare:29069
    DOI: 10.22004/ag.econ.29069
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    References listed on IDEAS

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    1. Quinn, William & Wasserman, Walter, 1983. "The Dairyman's Guide to Milk Marketing," EB Series 185767, Cornell University, Department of Applied Economics and Management.
    2. Hall, Seth C. & Oltenacu, Pascal A. & Milligan, Robert A., 1987. "Returns to Dairy Producers Under Different Seasonal Production Patterns," Research Bulletins 183664, Cornell University, Department of Applied Economics and Management.
    3. Kaiser, Harry M., 1986. "A Primer on Federal Milk Marketing Orders in the United States," EB Series 185849, Cornell University, Department of Applied Economics and Management.
    4. Prindle, Allen M., 1980. "Evaluation Of The Base-Excess Plan For Leveling Seasonal Milk Production: Case Example Of Maryland," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-4, April.
    5. Prindle, Allen M., 1980. "Evaluation Of The Base-Excess Plan For Leveling Seasonal Milk Production: Case Example Of Maryland," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 9(1), pages 1-4, April.
    6. Richard J. H. Caine & D. Peter Stonehouse, 1983. "Adjusting the Seasonality of Milk Shipments in Canada: Problems, Economic Impacts and Potential Policies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(3), pages 331-350, November.
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    Cited by:

    1. Weldon, Richard N. & Kilmer, Richard L. & Washington, Andrew A., 2002. "Practices Used by Dairy Farmers to Reduce Seasonal Production Variability," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), pages 1-11, April.
    2. Smyth, Paul & Harte, Laurence & Hennessy, Thia C., 2009. "Seasonality and Costs of Production on Irish dairy farms from 2000-2007," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51076, Agricultural Economics Society.
    3. Paul Smyth & Laurence Harte & Thia Hennessy, 2010. "Seasonality and Costs of Production on Irish dairy farms from 1994-2008," Working Papers 1001, Rural Economy and Development Programme,Teagasc.
    4. Gao, X. M. & Spreen, Thomas H. & DeLorenzo, Michael A., 1992. "A Bio-economic Dynamic Programming Analysis of the Seasonal Supply Response by Florida Dairy Producers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 211-220, December.
    5. Nubern, Christopher A. & Kilmer, Richard L., 1995. "Alternative Fluid Milk Procurement Systems For Florida Dairy Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-15, December.
    6. Kilmer, Richard L. & Morrill, John & Spreen, Thomas H. & Delorenzo, Michael A., 1992. "The Effects Of Alternate Cow Freshening Distributions On Milk Production And Imports In Florida," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-9, October.

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    Keywords

    Livestock Production/Industries;

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