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Commodity Policies and Product Differentiation: the California Milk Marketing Order and the Organic Dairy Sector

Author

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  • Balagtas, Joseph Valdes
  • Kreutzer, Kristina N.

Abstract

This paper evaluates the economic consequences of milk marketing orders for producers and consumers in organic and conventional milk markets. We develop a multi-market equilibrium displacement model that disaggregates the organic and conventional segments of the California milk market in order to evaluate the economic effects of alternative policies. We find that exemption of organics from marketing order regulation would make organic farmers better off at the expense of conventional farmers, but that complete deregulation would make both organic and conventional farms worse off.

Suggested Citation

  • Balagtas, Joseph Valdes & Kreutzer, Kristina N., 2007. "Commodity Policies and Product Differentiation: the California Milk Marketing Order and the Organic Dairy Sector," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9964
    DOI: 10.22004/ag.econ.9964
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    Cited by:

    1. Gunter, Allison & Goemans, Chris & Pritchett, James G. & Thilmany, Dawn D., 2012. "Linking an Equilibrium Displacement Mathematical Programming Model and an Input-Output Model to Estimate the Impacts of Drought: An Application to Southeast Colorado," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124930, Agricultural and Applied Economics Association.

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    Keywords

    Demand and Price Analysis; Marketing;

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