Supply Management for the U.S. Dairy Industry? Opportunities and Challenges.

Saitone, Tina L. and Richard J. Sexton

from ARE Update Vol. 13, No. 1, Sep/Oct, 2009

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Abstract

The U.S. dairy industry is considering a proposal to support federal legislation to implement supply management in the form of production quotas with “market-access fees” charged to those who exceed their production quota. We describe the proposed program, examine its potential to address low and unstable producer prices, and identify some key limitations and likely unintended consequences of the program.

Keywords

Dairy industry, production quotas, market access fees, U.S. policy

Citation

Saitone, Tina L. and Richard J. Sexton. "Supply Management for the U.S. Dairy Industry? Opportunities and Challenges." ARE Update 13(1)(2009):5-8. University of California Giannini Foundation of Agricultural Economics.
http://giannini.ucop.edu/publications/are-update/issues/2009/13/1/supply-management-for-the/