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Cow's milk still leads in the United States: The case of cow's, almond, and soy milk

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  • Sharon Raszap Skorbiansky
  • Monica Saavoss
  • Hayden Stewart

Abstract

While cow's milk and plant‐based milk are often hypothesized to be substitutes, much remains unknown about the impacts that plant‐based milks have on the retail price for cow's milk, if any. We explore the individual retail price relationship between two plant‐based milks, almond and soy, with cow's milk. If the markets are cointegrated, and shocks in the plant‐based markets affect the cow's milk market, it can add volatility to cow's milk prices, which could have implications for costs and benefits of the USDA Dairy Margin Coverage Program and price calculations by the Federal Milk Marketing Orders (FMMO). However, while we find evidence that plant‐based milk prices react to shocks in cow's milk prices, we do not find evidence that cow's milk prices respond to changes in plant‐based milk prices.

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  • Sharon Raszap Skorbiansky & Monica Saavoss & Hayden Stewart, 2022. "Cow's milk still leads in the United States: The case of cow's, almond, and soy milk," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 204-214, March.
  • Handle: RePEc:bla:agecon:v:53:y:2022:i:2:p:204-214
    DOI: 10.1111/agec.12700
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    Cited by:

    1. Capps, Oral & Wang, Lingxiao, 2024. "U.S. Household Demand System Analysis for Dairy Milk Products and Plant-Based Milk Alternatives," 2024 Annual Meeting, July 28-30, New Orleans, LA 343575, Agricultural and Applied Economics Association.
    2. Skorbiansky, Sharon Raszap & Saavoss, Monica & Camp, Kevin M., 2022. "The Economics of Plant-Based Milk," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322496, Agricultural and Applied Economics Association.

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