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Alternative Fluid Milk Procurement Systems For Florida Dairy Farmers

Published online by Cambridge University Press:  28 April 2015

Christopher A. Nubern  and
Richard L. Kilmer
Christopher A. Nubern
Affiliation:
Food and Resource Economics Department at the University of Florida
Richard L. Kilmer
Affiliation:
Food and Resource Economics Department at the University of Florida
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Abstract

This article evaluates the effects of alternative fluid milk procurement strategies on the aggregate net revenue of Florida cooperative members. They are (1) supplemental milk obtained from import sources, (2) supplemental milk obtained from a supply plant, (3) increased supply as a result of an expanded production area, and (4) supplemental milk obtained through pooling arrangements with regional dairy cooperatives. The final ranking of a scenario appears to be dependent primarily on the total cost of exports within the model. The optimum procurement strategy for Florida cooperatives should concentrate on reducing the quantity of surplus milk.

Keywords

cooperativeexportsimportsnet revenuepoolingprocurement
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 2 , December 1995 , pp. 460 - 474
Copyright
Copyright © Southern Agricultural Economics Association 1995

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