Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-12T21:56:52.895Z Has data issue: false hasContentIssue false
  • English
  • Français

A Bio-economic Dynamic Programming Analysis of the Seasonal Supply Response by Florida Dairy Producers

Published online by Cambridge University Press:  28 April 2015

X. M. Gao ,
Thomas H. Spreen  and
Michael A. DeLorenzo
X. M. Gao
Affiliation:
Department of Agricultural Economics and Rural Sociology at theUniversity of Arkansas
Thomas H. Spreen
Affiliation:
Food and Resource Economics Department
Michael A. DeLorenzo
Affiliation:
Dairy Science Department at theUniversity of Florida
Get access Rights & Permissions [Opens in a new window]

Abstract

Seasonal price premiums have been proposed as a means of dampening the highly seasonal patterns of milk production in Florida. A Markov decision bio-economic model of the breeding and replacement decisions was solved via stochastic dynamic programming and used to analyze the potential supply response to seasonal price premiums. The results of the analysis suggest that the seasonal milk supply in Florida is highly price inelastic.

Keywords

dairy productionprice analysisbio-economic modelherd breeding and replacement
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 24 , Issue 2 , December 1992 , pp. 211 - 220
Copyright
Copyright © Southern Agricultural Economics Association 1992

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Caine, R.J.H., and Stonehouse, D.P.. “Adjusting the Seasonality of Milk Shipments in Canada: Problems, Economic Impacts and Potential Policies.” Can. J. Agr. Econ., 31(1983):331–350.CrossRefGoogle Scholar
Chavas, J. P., Kraus, A. F., and Jesse, E. V.. “A Regional Analysis of Milk Supply Repsonse in the United States.” N. Cent. J. Agr. Econ., 12(1990): 149–164.Google Scholar
DeLorenzo, M., and Maley, J.. “Studies on Lactation Curves for Florida Herd.” Dept. Dairy Sci., University of Florida, 1987.Google Scholar
DeLorenzo, M.A., Spreen, T.H., Bryan, G.R., Beede, D.K., and Van Arendonk, J.A.M.. “Optimizing Model: Insemination, Replacement, Seasonal Production, and Cash Flow.” J. Dairy Sci., 75(1992):885–896.CrossRefGoogle ScholarPubMed
DeLorenzo, M., “Seasonal Costs and Retums: Maximizing Net Returns.” Proceedings of the 1988 Florida Dairy Production Conference, University of Florida, Gainesville, pp 95–99.Google Scholar
Dreyfus, S.E. and Law, A.M.. The Art and Theory of Dynamic Programming. New York: Academic Press, Inc., 1977.Google Scholar
Feedstuffs. The Agribusiness Weekly. Minneapolis: The Miller Publishing Co., Selected issues, 1986–1987.Google Scholar
Florida Department of Agriculture. Livestock Market Report. Winter Park, FL: Market News Bureau, Division of Marketing, 1980–1987.Google Scholar
Gao, Xaoming. “Seasonal Price Premiums and Supply Response by Florida Dairy Producers: A Stochastic Dynamic Programming Analysis.” M.S. thesis, University of Florida, 1988.Google Scholar
Hall, S.C., Oltenacu, P.A., and Milhgan, R.A.. “Retums to Dairy Producers Under Different Seasonal Production Patterns.” Dept. of Agr. Econ. Agr. Econ. Res. Pap. 87-27, Cornell University, Oct. 1987.Google Scholar
Hillier, Frederick, and Liebermann, G.. Introduction to Operation Research. 3rd ed. San Francisco: Holden- Day, Inc., 1980.Google Scholar
Kaiser, H.M., Oltenacu, P.A., and Smith, T.R.. “The Effects of Alternative Seasonal Price Differentials on Milk Production in New York.” Northeastern J. Agr. and Res. Econ., 17(1988):46–55.CrossRefGoogle Scholar
Kilmer, R.L., and Blake, P.. “Supply, Demand, and Imports of Bulk Milk Into Florida.” Florida Food and Resource Economics, 86(1989): 1–4.Google Scholar
Kristensen, A.R., and Ostergaard, V.. “Optimal Replacement Time of Dairy Cow Determined by A Stochastic Model.” Beretning Fra Statens Husdyrbrugsforog, Kobenhavn V, (1982): 533.Google Scholar
Luh, Y.h., and Stefanou, S.E.. “Dairy Supply and Factor Demand Response to Output Price Risk: An Economic Assessment.” J. Northeast. Agr. Econ. Coun., 18(1989):103–108.Google Scholar
McArthur, A.T.G. “Application of Dynamic Prograrnming to the Culling Decision in Dairy Cattle.” Proc. N. Zealand Soc. Ani. Prod., 33(1973): 41.Google Scholar
National Academy of Sciences. Nutrient Requirements of Dairy Cattle. National Research Council, Washington, D.C., 1977.Google Scholar
Prindle, A.M. “Evaluation of the Base-Excess Plan for Leveling Seasonal Milk Production: Case Example of Maryland.” J. Northeast. Agr. Econ. Coun., 9(1980):47–50.CrossRefGoogle Scholar
Prindle, A.M., and Livezey, J.S.. “Optimal Production Schedules for a Representative Farm Under Alternative Seasonal Milk Pricing Patterns of the Base-Excess Plan.” J. Northeast. Agr. Econ. Coun., 10(1981): 23–29.CrossRefGoogle Scholar
Simpson, J., and Alderman, Rom. “Seasonality of Florida Feeder Cattle Prices.” Florida Cooperative Extension Service Bulletin No. 214, JJFAS, University of Florida, Gainesville, FL, 1985.Google Scholar
Smith, B.J.The Dairy Cow Replacement Problem. Florida Cooperative Extension Service Bulletin No. 720, IFAS, University of Florida, Gainesville, FL 1970.Google Scholar
Stewart, H.M., Burnside, E.B., and Pfeiffer, W.C.. “Optimal Culling Strategies for Dairy Cows of Different Breeds.” J. Dairy Sci., 61(1978):1605–1615.CrossRefGoogle Scholar
Stewart, H.M., Burnside, E.B., Wilton, J.M., and Pfeiffer, W.C.. “A Dynamic Programming Approach to Culling Decisions in Commercial Dairy Herds.” J. Dairy Sci., 60(1977):602–616.CrossRefGoogle Scholar
Van Arendonk, J.A.M. “Optimum Replacement Polices and Their Consequences Determined by Dynamic Programming.” Modeling Livestock Production. CEL - Seminar. April 7-9, 1987, Brussels.Google Scholar
Van Arendonk, J.A.M.Studies on the Replacement Policies in Dairy Cattle. Wagening, The Netherlands: Agricultural University Press, 1986.Google Scholar
Weersink, A. and Howard, W.. “Regional Adjustment Response in the U.S. Dairy Sector to Changes in Milk Support Price”. West. J. Agr. Econ., 15(1990):13–21.Google Scholar