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Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States

Joseph V. Balagtas
Purdue University - Department of Agricultural Economics

Aaron Smith
University of California, Davis - Department of Agricultural and Resource Economics

Daniel A. Sumner
University of California, Davis - Department of Agricultural and Resource Economics



American Journal of Agricultural Economics, Vol. 89, No. 4, pp. 839-851, November 2007

Abstract:     
The share of raw milk meeting fluid quality (Grade A) standards in the United States rose steadily through the latter half of the twentieth century, but a shrinking portion of that was used in fluid products. Grade A milk exceeds the quality standards for the manufactured products for which it has been increasingly used. We present an econometric model that exploits regional and temporal variation in policy implementation to identify the effect of marketing orders on the Grade A share of milk. Results support the hypothesis that marketing orders significantly encouraged the growth in the Grade A share of milk.

Accepted Paper Series

Date posted: October 01, 2007 ; Last revised: October 09, 2007

Suggested Citation

Balagtas, Joseph V., Smith, Aaron D. and Sumner, Daniel A., Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States. American Journal of Agricultural Economics, Vol. 89, No. 4, pp. 839-851, November 2007. Available at SSRN: http://ssrn.com/abstract=1018117 or doi:10.1111/j.1467-8276.2007.01010.x


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Contact Information

Joseph V. Balagtas (Contact Author)
Purdue University - Department of Agricultural Economics ( email )
West Lafayette, IN 47907-1145
United States
Aaron D. Smith
University of California, Davis - Department of Agricultural and Resource Economics ( email )
One Shields Avenue
Davis, CA 95616
United States
530-752-2138 (Phone)
530-752-5614 (Fax)
Daniel A. Sumner
University of California, Davis - Department of Agricultural and Resource Economics ( email )
One Shields Avenue
Davis, CA 95616
United States
530-752-5002 (Phone)
530-752-5614 (Fax)
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References: 30
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