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Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data

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  • Volpe, Richard III
  • Park, Timothy A.
  • Hennessy, David A.
  • Jensen, Helen H.

Abstract

We study the determinants of somatic cell count (SCC) for fluid milk among U.S. dairies. We synthesize much of the work that has been done to model SCC economically in order to identify the potential impacts of buyer-imposed penalties and incentives within the supply chain. Additionally we estimate quantile regression for count data to measure impacts specifically for those operations with the highest SCC and to account for the statistical properties of the data. Premiums in particular have the potential to reduce SCC considerably where it is currently the highest. We draw implications for profitability in relation to SCC reduction.

Suggested Citation

  • Volpe, Richard III & Park, Timothy A. & Hennessy, David A. & Jensen, Helen H., 2013. "Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151425, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:151425
    DOI: 10.22004/ag.econ.151425
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    Cited by:

    1. Doris Läpple & Garth Holloway & Donald J Lacombe & Cathal O’Donoghue, 2017. "Sustainable technology adoption: a spatial analysis of the Irish Dairy Sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(5), pages 810-835.

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    More about this item

    Keywords

    Demand and Price Analysis; Research Methods/ Statistical Methods;

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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