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Dairy Industry Policy

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  • Freebairn, John W.

Abstract

Current dairy industry policy facilitates discriminatory pricing of milk used for market milk, domestic manufactured products and for export products. A variant of the Parish model is used to estimate transfer and efficiency costs of these arrangements. Transfers from consumers to producers represent about a third of gross farm returns. Efficiency costs of too little consumption are small. Estimated costs of excess production are between $25 million and $65 million a year. The model suggests important changes to the way in which the Industry Commission calculates rates of assistance to the dairy industry.

Suggested Citation

  • Freebairn, John W., 1992. "Dairy Industry Policy," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(01), pages 1-19, April.
    • Handle: RePEc:ags:remaae:12499
    DOI: 10.22004/ag.econ.12499
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    File URL: https://ageconsearch.umn.edu/record/12499/files/60010023.pdf
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    References listed on IDEAS

    as
    1. Alston, Julian M. & Quilkey, John J., 1980. "Insurance Milk," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 1-8, December.
    2. R. M. Parish, 1962. "The Costs Of Protecting The Dairying Industry," The Economic Record, The Economic Society of Australia, vol. 38(82), pages 167-182, June.
    3. Hall, Nigel H. & Menz, Kenneth M., 1985. "Product Supply Elasticities for the Australian Broadacre Industries, Estimated with a Programming Model," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(01), pages 1-8, April.
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    Cited by:

    1. Hill, D. J. & Piggott, R. R. & Griffith, G. R., 2001. "Profitability of incremental generic promotion of Australian dairy products," Agricultural Economics, Blackwell, vol. 26(3), pages 253-266, December.
    2. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 2005. "Efficiency losses in milk marketing boards - the importance of exports," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 77-97.
    3. Geoff Edwards, 2003. "The story of deregulation in the dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 75-98, March.
    4. Malcolm, Bill, 1994. "Australian Agricultural Policy Since 1992: New Emphases, Old Imperatives," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(02), pages 1-23, August.
    5. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1999. "Profitability Of Incremental Generic Promotion Expenditure By Australian Dairy Farmers," Working Papers 12913, University of New England, School of Economics.

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    Keywords

    Agricultural and Food Policy;

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