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Linkages Between Regulated And Unregulated Markets: The Case Of Milk Supply In Kenya, Wayne H. Howard, Ian Mcdonald
Linkages Between Regulated And Unregulated Markets: The Case Of Milk Supply In Kenya, Wayne H. Howard, Ian Mcdonald
Agribusiness
Linkages between the regulated and unregulated dairy markets in Kenya were examined using an econometric model of the fluid milk intake for eight processing plants. Counter-intuitive results were obtained: an increase in the regulated price was significant in decreasing intake in the regulated market, indicating that a price increase in the regulated market also increased price and quantity supplied in the unregulated market. Lagged rainfall was a proxy for available feed and was highly significant in explaining milk intake in the regulated market.
Dynamic Adjustment In The U.S. Dairy Industry, Wayne H. Howard, Richard C. Shumway
Dynamic Adjustment In The U.S. Dairy Industry, Wayne H. Howard, Richard C. Shumway
Agribusiness
A dual model is used to examine the dynamic structure of the U.S. dairy industry. Properties implied by the theory of the competitive firm and independent adjustment of two quasi-fixed inputs, labor and herd size, are tested and not rejected. Instantaneous adjustment, however, is soundly rejected for each quasi-fixed input. Input adjustment to optimal levels is estimated to take about two years for labor and ten for cows. Quality adjustments of the labor and cow series do not fully embody the technological change that has occurred in this industry over the study period.