A spatial model of the U.S. dairy sector is used to analyze support prices at 75 and 80 percent of parity, supports based on the cost of production, a policy of minimal or non-support, and the possibility of increasing dairy imports. Results indicate that the current program of parity based...

This study reports an effort to improve estimates of the cost of reconstituted milk relative to fresh milk. The cost advantage of reconstituted milk is calculated for representative plants in six cities across the U.S. The implications for farm prices of lower cost reconstituted milk are discussed.