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Milk Pricing Problems and Solutions: An Essay on the Need for New State Level Milk Price Regulation in the Northeast, with Special Attention to Connecticut Substitute Bill No. 5642

Author

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  • Ronald W. Cotterill

    (University of Connecticut)

Abstract

Before one can talk about solutions to the “milk pricing problem” one needs to identify its many dimensions and then target solutions to specific aspects of the problem. Is the problem one of supply outpacing demand on the national level? Is it the importation of milk components and products from other countries? Is it the importation of dairy replacement heifers from Canada? For the Northeast is it the loss of the class 1 fluid differential relative to the upper Midwest in the federal milk market orders? Does pooling of milk from distant producers on the Northeast market order lower Northeast farm –gate prices? Does depooling in other market orders, when manufacturing milk prices rapidly increase, disadvantage the Northeast? Is the problem an increasing imbalance of power between Northeast dairy farmers who bargain via their cooperatives with processors and retailers in milk marketing channels? Specifically, is it an increase in market pricing power by retailers that results in higher consumer prices and lower price premiums for farmers?

Suggested Citation

  • Ronald W. Cotterill, 2004. "Milk Pricing Problems and Solutions: An Essay on the Need for New State Level Milk Price Regulation in the Northeast, with Special Attention to Connecticut Substitute Bill No. 5642," Issue Papers 45, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:zwi:ipaper:45
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    File URL: http://www.zwickcenter.uconn.edu/documents/issuepapers/ip45.pdf
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    References listed on IDEAS

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    1. Adam Rabinowitz & Matthew Schwane & Ronald W. Cotterill, 2004. "Retail Milk Prices in New England, New York, and Seattle: An Unresolved Issue," Issue Papers 46, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    2. Jesse, Edward V. & Cox, Thomas L. & Cropp, Robert A. & Fortenbery, T. Randall, 2002. "Rethinking Dairyland: The Effects of Federal Dairy Programs on the Competitiveness of Dairying in Wisconsin," Marketing and Policy Briefing Papers 12708, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
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    Cited by:

    1. Cotterill, Ronald W., 2006. "Pricing and Policy Problems in the Northeast Fluid Milk Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-12, October.

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    1. Cotterill, Ronald, 2004. "Milk Pricing Problems and Solutions: An Essay on the Need for New State Level Milk Price Regulation in the Northeast, with Special Attention to Connecticut Substitute Bill No. 5642," Issue Papers 169527, University of Connecticut, Food Marketing Policy Center.

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