Interaction of United States and European Community Dairy Policies Through the International Market

Marchant, Mary A.; Neff, Steven A.

doi:10.3168/jds.s0022-0302(95)76737-6

Cited by 4 publications

(2 citation statements)

References 3 publications

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“…Dairy market deregulation creates pressures on lowering price supports in dairy product supply chains. In the increased competition on global dairy markets, the crucial issues are related to international competitiveness and marketing on global markets (Novakovic and Thompson, 1978;Marchant and Neff, 1995;Barney and Smith, 1998;Stukenberg and Blayney, 2006). Therefore, questions of comparative advantages among global dairy exporters, such as the United States, New Zealand, Australia (Buxton and Frick, 1976), and the enlarged EU-27 countries, on global markets are of particular research and policy relevance for politically and economically sensitive dairy product reforms in several countries (Suzuki and Kaiser, 2005), as well as dairy supply chain management.…”

Section: Estimation Frameworkmentioning

confidence: 99%

Export competitiveness of dairy products on global markets: The case of the European Union countries

Bojnec

Fertő

2014

Journal of Dairy Science

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This paper analyzed the export competitiveness of dairy products of the European Union (EU) countries (EU-27) on intra-EU, extra-EU, and global markets, using the revealed comparative advantage index over the 2000-2011 period. The results indicated that about half of the EU-27 countries have had competitive exports in a certain segment of dairy products. The results differed by level of milk processing and for intra-EU and extra-EU markets, and did so over the analyzed years. Belgium, Denmark, France, Ireland, and the Netherlands are old EU-15 countries with competitive dairy exports (from the lowest to the highest according to the level of milk processing). The majority of the new EU-12 countries have faced difficulties in maintaining their level of export competitiveness, at least for some dairy products and market segments. The more competitive EU-12 countries in dairy exports were the Baltic States (Estonia, Latvia, and Lithuania) and Poland. The duration of export competitiveness differed across the dairy groups of products according to the level of milk processing, indicating the importance of dairy chain product differentiation for export competitiveness and specialization. The export competitiveness of the higher level of processed milk products for final consumption can be significant for export dairy chain competitiveness on global markets.

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Section: Estimation Frameworkmentioning

confidence: 99%

Export competitiveness of dairy products on global markets: The case of the European Union countries

Bojnec

Fertő

2014

Journal of Dairy Science

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“…Given the increasing price volatility in dairy products resulting from declining dairy support prices and increasingly global markets (Marchant & Neff, 1995), the opportunity cost of an inappropriate pricing strategy is greater now than in the past. Farther up the marketing stream, faster and more complete price transmission across market levels would clear markets faster and send more timely signals to producers, processors, and wholesalers.…”

Section: Discussionmentioning

confidence: 99%

Testing for Sources of Irreversible Consumer Demand

Maynard¹

2015

JEW

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The existence of irreversible demand is tested, whereby price increases induce a different absolute magnitude of quantity change than price decreases. Irreversibility is potentially likely in retail food settings for storable products that are consumed regularly and can affect pricing strategy performance. If irreversibility exists, the subsequent research question for storable product demand is whether loss aversion effects dominate stockpiling effects, or vice versa. A two-period theoretical model is developed, which predicts more elastic responses to downward price movements via stockpiling, but empirical tests on secondary data are needed to evaluate offsetting loss aversion effects. A variant of the Rotterdam demand model is developed to allow differential response to price increases and decreases. The model is applied to scanner data of short periodicity (weekly in this case), which are necessary to measure meaningful demand responses to food price changes. The products selected are U.S. cheeses and table spreads that are storable over multiple weeks. The results suggest that stockpiling dominates loss aversion. One potential cause of this behavior may be that marketers asymmetrically provide consumers with more reference price information when lowering prices, but not when raising prices. When stockpiling effects dominate, given the typically price-elastic store-level demand for food products, high-low pricing strategies should produce higher revenue. Regarding measurement of average demand response, reversible demand models applied to weekly data may overestimate own-price elasticities.

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Introduction: research agendas and foci of concern in dairy industry restructuring

Schwarzweller¹,

Davidson²

Research in Rural Sociology and Development

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Interaction of United States and European Community Dairy Policies Through the International Market

Cited by 4 publications

References 3 publications

Export competitiveness of dairy products on global markets: The case of the European Union countries

Export competitiveness of dairy products on global markets: The case of the European Union countries

Testing for Sources of Irreversible Consumer Demand

Introduction: research agendas and foci of concern in dairy industry restructuring

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