Dairy product markets have been burdened with excess supplies since late 1979. The principal cause of these surpluses is overly high government price supports. This situation can be traced to a series of policy decisions made in the mid-1970s. The evolution of dairy policy during the last 10...

Stabilization of wool prices (which is partially achieved by the Wool Commission) may reduce the average annual net income (surplus) of growers and also of manufacturers of wool. The argument that the surplus of growers may be reduced is based upon Massell's extension of Oi's hypothesis. The...