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Milk Prices (milk + price)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

External Transaction Costs and Large-scale Farming in Moscow Oblast Coûts de transaction externes et agriculture à grande échelle dans la région de Moscou Externe Transaktionskosten und landwirtschaftliche Großbetriebe in der Oblast Moskau

EUROCHOICES, Issue 2 2010
Nikolai SvetlovArticle first published online: 3 AUG 2010
Summary External Transaction Costs and Large-scale Farming in Moscow Oblast The article addresses the reasons for the domination of large-scale corporate farms in the Moscow oblast of Russia and concludes that high external transaction costs are likely to be an important determining factor. Over the nine year period studied, larger farms are shown to achieve higher performance. Increasing returns to scale, however, were not significant in explaining the superior performance of the larger farms. It is hypothesised that high external transaction costs due to lack of transparency in the milk market, typical of underdeveloped markets, give the larger farms a competitive advantage. Their search costs per unit of output are relatively low and they are able therefore to achieve higher farm-gate prices for milk as a result. The results confirm the dependence of the farm-gate milk price on farm size due to the presence of high transaction costs in the market of milk, the major output of the studied farms. The high performance farms were able to grow during the study period whereas the lower performing farms had limited growth capacity. A more competitive and transparent market environment along with improved infrastructure could lower transaction costs and entry barriers and provide opportunities for smaller scale corporate farms to compete more effectively. Cet article essaie d'expliquer les raisons de la domination des grandes exploitations agricoles constituées en société de la région de Moscou et conclut que l'ampleur des coûts de transaction externes est probablement un facteur explicatif important. Au cours de la période étudiée qui couvre neuf années, les exploitations les plus grandes ont enregistré les performances les plus élevées. Les rendements d'échelle croissants n'ont cependant pas expliqué de manière significative la meilleure performance de ces exploitations. Nous faisons l'hypothèse que les forts coûts de transaction externes liés au manque de transparence sur le marché laitier, typique des marchés incomplètement développés, donnent à ces plus grandes exploitations un avantage compétitif. Leur coût de recherche par unité de produit est relativement bas et elles sont donc capables d'obtenir des prix au niveau de la ferme plus élevés pour le lait. Les résultats confirment la dépendance des prix à la ferme envers la taille de l'exploitation du fait de la présence de coûts de transaction élevés sur le marché laitier, le lait étant le principal produit des exploitations étudiées. Les exploitations très performantes ont pu croître au cours de la période examinée tandis que les capacités de développement des exploitations les moins performantes étaient limitées. Un environnement de marché plus concurrentiel et transparent ainsi que de meilleures infrastructures pourraient réduire les coûts de transaction et les barrières à l'entrée dans le secteur, et fournir des opportunités aux exploitations constituées en société de plus petite taille d'être concurrentielles de manière plus efficace. Dieser Beitrag untersucht, weshalb es in der russischen Oblast Moskau hauptsächlich große Corporate Farms gibt, und kommt zu dem Schluss, dass dafür wahrscheinlich hohe externe Transaktionskosten ausschlaggebend sind. Über den neunjährigen Untersuchungszeitraum waren größere Betriebe erfolgreicher. Steigende Skalenerträge waren jedoch bei der Begründung für den höheren Erfolg der größeren Betriebe nicht maßgeblich. Es wird angenommen, dass hohe externe Transaktionskosten aufgrund von fehlender Transparenz auf dem Milchmarkt , typisch für unterentwickelte Märkte , den größeren Betrieben einen Wettbewerbsvorteil verschaffen. Ihre Suchkosten pro Produkteinheit sind relativ gering, daher sind sie in der Lage, höhere Preise für Milch ab Hof zu erzielen. Die Ergebnisse bestätigen die Abhängigkeit des Preises für Milch ab Hof von der Betriebsgröße, weil es auf dem Markt für Milch (dem wichtigsten Produkt der untersuchten Betriebe) hohe Transaktionskosten gibt. Den erfolgreichen Betrieben gelang es, über den Untersuchungszeitraum zu wachsen, während die leistungsschwächeren Betriebe nur eingeschränkt wachstumsfähig waren. Ein wettbewerbsfähigeres und transparenteres Marktumfeld in Kombination mit einer besseren Infrastruktur könnte die Transaktionskosten und Marktzugangsbeschränkungen senken sowie kleineren Corporate Farms Möglichkeiten eröffnen, um effektiver am Wettbewerb teilzunehmen. [source]

Retail oligopoly power, dairy compact, and Boston milk prices

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2005
Benaissa Chidmi
This paper assesses the impacts of the Northeast Dairy Compact (NEDC) and retail oligopoly power on fluid milk prices in Boston. Empirical results reveal that price increases due to oligopoly power outweighed those caused by the NEDC by nearly seven times. In fact, markups are estimated at approximately 25% of the retail milk price, translating into approximately a little less than $0.75/gallon. We also estimated that only around two-thirds of the raw milk price changes were passed forward to consumers. This helps explain why consumer prices have come down only little after elimination of the NEDC. In fact, the new milk income-loss contract program, which basically provides partial price subsidies to farmers, has contributed to low raw milk prices that have generated substantial benefits to milk processors and retailers, modest benefits to farmers and consumers, all at the expense of taxpayers. [JEL classification: L66, L11, L13]. © 2005 Wiley Periodicals, Inc. Agribusiness 21: 477,491, 2005. [source]

Effects of government programs to raise milk prices: Academic economists and public policy

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2005
Daniel A. Sumner
The Northeast Dairy Compact benefited milk suppliers (and allied input suppliers) and harmed those on the fluid milk demand side in the Compact region, while having opposite impacts on these groups outside the Compact region. These simulation results leave many questions unanswered, but seem relatively robust. Simulations require many assumptions, but so do all other approaches to policy analysis. The specific policy question addressed and available data determine the most promising approach. In some cases, as with the evaluating effects of the Compact, a variety of approaches to policy analysis are complementary. [EconLit citations: Q18, Q13, L10, L43]. © 2005 Wiley Periodicals, Inc. Agribusiness 21: 473,476, 2005. [source]

Retail oligopoly power, dairy compact, and Boston milk prices

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2005
Benaissa Chidmi
This paper assesses the impacts of the Northeast Dairy Compact (NEDC) and retail oligopoly power on fluid milk prices in Boston. Empirical results reveal that price increases due to oligopoly power outweighed those caused by the NEDC by nearly seven times. In fact, markups are estimated at approximately 25% of the retail milk price, translating into approximately a little less than $0.75/gallon. We also estimated that only around two-thirds of the raw milk price changes were passed forward to consumers. This helps explain why consumer prices have come down only little after elimination of the NEDC. In fact, the new milk income-loss contract program, which basically provides partial price subsidies to farmers, has contributed to low raw milk prices that have generated substantial benefits to milk processors and retailers, modest benefits to farmers and consumers, all at the expense of taxpayers. [JEL classification: L66, L11, L13]. © 2005 Wiley Periodicals, Inc. Agribusiness 21: 477,491, 2005. [source]

Asymmetric response of retail milk prices in the northeast revisited

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2005
Daniel A. Lass
Retail milk price responses to farm price changes were analyzed for Boston, Massachusetts, and Hartford, Connecticut. Prior research concluded that asymmetries did not exist in the response of retail fluid milk prices to changes in farm prices. This study finds transmission rates are greater for the Compact period (100,120%) than the pre-Compact period (66,88%). Short-run asymmetries are apparent. Retail prices respond rapidly to farm price increases, but slowly to farm price decreases. This study also finds evidence of long-run asymmetry. When equivalent farm price increases and decreases occur, retail prices do not return to the same levels that were observed before the price changes. Such long-run asymmetry was not observed in prior empirical studies of retail prices in the Northeast. [EconLit Classification: Q110, Q130, L110]. © 2005 Wiley Periodicals, Inc. Agribusiness 21: 493,508, 2005. [source]