Abstract: A milk marketing cooperative (MMC) was created by Florida dairy farmers to link the primary supply of fluid milk with the derived demand of processors in the vertical market. For any given milk supply, the revenue or return to farmers per unit of milk is the average milk price received by the MMC minus the MMC's transfer cost. An important task for the MMC is to operate the fluid milk hauling system that optimizes the MMC's milk transfer cost (routing and scheduling cost) subject to farm and plant schedules. The objective of this study is to determine if it is economically feasible to implement a more efficient routing and scheduling of farm-to-plant milk collection by the MMC.
Key Words: cooperatives, margins, milk, routing, scheduling
Contact Author:
Richard L. Kilmer
Dept. of Food & Resource Economics
McCarty Hall
P.O. Box 110240
University of Florida
Gainesville, FL 32611-0240
Phone: (352) 392-1881
Fax: (352) 392-9898
Abstract: Substituting petroleum diesel with biodiesel could decrease air emissions, reduce reliance on foreign oil, and help expand markets for U.S. farmers. Soybean producers can potentially capture this value-added by forward integrating the processing of soybeans into biodiesel via a New Generation Cooperative (NGC). Using probit analysis, this study examines factors influencing soybean producers' willingness to participate in an NGC to produce biodiesel. Tobit analysis is used to examine the factors influencing the number of shares the soybean producer would be willing to purchase. Survey results indicate that over 70% of the soybean producers in the study group are interested in investing in an NGC to produce biodiesel. Among those producers willing to participate, the average number of shares they would purchase was just under 3,460.
Key Words: biodiesel, New Generation Cooperative, probit analysis, soybean producers, tobit analysis
Contact Author:
Kim L. Jensen
Dept. of Agricultural Economics
The University of Tennessee
302 Morgan Hall
2621 Morgan Circle
Knoxville, TN 37996-4518
Phone: (865) 974-3716
Fax: (865) 974-4829
Abstract: USDA and Cooperative Extension Service forecasts of hog prices are directly tested for incremental value vis-à-vis futures-based forecasts in a forecast encompassing framework. At horizons less than six months, the lean hog futures-based forecast is found to be more accurate than both the USDA and Extension Service forecasts, and the difference in forecasting performance is statistically significant. Not only are the agency forecasts less accurate, but neither the USDA nor the Extension Service forecasts add incremental information relative to the futures forecast. The results suggest that extension forecasters may want to refocus forecasting efforts on basis relationships, longer forecast horizons, or commodities without active futures markets.
Key Words: forecast encompassing, hog prices, public forecasts
Contact Author:
Mark R. Manfredo
Morrison School of Agribusiness & Resource Management
Arizona State University - East Campus
7001 E. Williams Field Rd., Wanner Hall
Mesa, AZ 85212
Phone: (480) 727-1040
Fax: (480) 727-1961
Abstract: Data from the U.S. Department of Agriculture's 1994-96 and 1998 Continuing Survey of Food Intakes by Individuals (CSFII) are used to describe pork consumption patterns as well as to estimate a censored demand system for pork cuts. The descriptive analysis fills the void about basic information on who consumes pork, how much, and where. A censored system of four pork cuts is estimated for adults, using a maximum-likelihood procedure. The estimated system is used to predict consumption of pork products by adults through the year 2020.
Key Words: censored dependent variables, CSFII, pork consumption, Tobit system
Contact Author:
Biing-Hwan Lin
ERS/USDA
1800 M Street, NW
Washington, DC 20036-5831
Phone: (202) 694-5458
Fax: (202) 694-5688
Abstract: In addition to the conventional auction method of cattle marketing, some alternative marketing arrangements include sale by private treaty, video auction, retained ownership, and use of strategic alliances. This study finds that 91% of Louisiana producers use conventional auctions, while 39% use other types of marketing arrangements. The most heavily used alternative marketing arrangement is private treaty, at 26%. Those producers using alternative marketing arrangements tend to be larger, have heavier weaning weights, have more diverse farming operations, be younger, have greater contact with their county extension agents, and depend less on income from off-farm sources.
Key Words: cattle marketing, conventional auction, private treaty, strategic alliance, video auction
Contact Author:
Jeffrey M. Gillespie
Dept. of Agricultural Economics & Agribusiness
101 Ag Administration Building
Louisiana State University
Baton Rouge, LA 70803
Phone: (225) 578-3282
Fax: (225) 578-2716
Abstract: A choice-based conjoint experiment was used to examine consumer willingness to pay for a farm-raised pre-cooked roast beef product. Consumers were contacted in a grocery store and provided a sample of the pre-cooked product. Findings indicate there is a small, but statistically significant willingness-to-pay premium for the farm-raised product, suggesting that some product differentiation may result in higher prices for these products. The study outlines an approach to marketing research.
Key Words: beef, conjoint, convenience foods, experiments, in-store tests, surveys
Contact Author:
Darren Hudson
Department of Agricultural Economics
Mississippi State University
Box 5187
Mississippi State, MS 39762
Phone: (662) 325-7998
Fax: (662) 325-6614
Abstract: Under the direction of the Agricultural Risk Protection Act of 2000, the U.S. Congress proposed a crop insurance program for the Bristol Bay, Alaska, commercial salmon fishery. This study examines the feasibility of extending crop insurance to this commercial fishery. The specific focus of this analysis is on differences between this commercial capture fishery and agricultural enterprises in the context of property rights and producer control. Findings show that differences between this commercial fishery and agricultural enterprises would require substantial modifications to existing crop insurance programs. Furthermore, it is recommended that the consideration of extending crop insurance be delayed until this fishery is rationalized.
Key Words: Bristol Bay, commercial fisheries, crop insurance, farm programs, property rights, risk management, salmon
Contact Author:
Joshua A. Greenberg
Dept. of Resources Management
University of Alaska, Fairbanks
P.O. Box 757200
Fairbanks, AK 99775-7200
Phone: (907) 474-7188
Fax: (907) 474-6184
