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1 – 10 of over 7000The chapter will document the Canadian reaction, as reflected in the demand of New Zealand, that Canada fundamentally alters its dairy supply management system in order to…
Abstract
The chapter will document the Canadian reaction, as reflected in the demand of New Zealand, that Canada fundamentally alters its dairy supply management system in order to participate in the Trans-Pacific Partnership negotiations. The Canadian government has resolutely refused to do so, supported wholeheartedly by dairy farmers throughout the country. This is in part because of the effect such an action would have on rural spaces and the debilitating result it would have on Canadian dairy production. As well, the chapter will address the issue of the cost of dairy products in New Zealand as compared with Canada. Part of this analysis will focus on the role of supermarkets in determining the price structure of milk in both Canada and New Zealand. Finally, the chapter will offer an examination of the New Zealand system as represented by Fonterra and the Canadian system as epitomized by dairy supply management.
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Richard Nehring, Richard Barton and Charles Hallahan
The purpose of this paper is to examine the rise in crossbred cow numbers in the US dairy herd. Methods used look at well managed herds to see if crossbreeding provides a…
Abstract
Purpose
The purpose of this paper is to examine the rise in crossbred cow numbers in the US dairy herd. Methods used look at well managed herds to see if crossbreeding provides a management tool that producers are using to maintain profitability.
Design/methodology/approach
The authors estimate a Translog stochastic production frontier (SPF) for US dairy farms to examine the competitiveness of crossbred and non-crossbred dairy herds by system and region.
Findings
The bottom-line conclusion is that WM or highly efficient crossbred herds solidly compete on a financial basis with larger WM Western Holstein herds, the most technically efficient managed group, based on the SPF results in the authors’ study. The study finds that net return on assets for crossbred herds are not different from Western Holstein herds and that there is no significant difference in amount of milk per cow produced annually.
Research limitations/implications
Because of a need to unmask the advantages of crossbreeding as a technology it was necessary to separate WM herds from poorly managed herds. That was done by frontier estimates that robustly ranked operation and corrected for endogeneity, tested for selectivity bias, and incorporated the NASS survey design.
Originality/value
For the first time, the 2010 Dairy Cost and Returns questionnaire version of the Agricultural Resource Management Survey (Dairy CAR) design allows researchers to expand survey observations to represent the vast majority of the US dairy farm population and to sort dairy farms into crossbred/non-crossbred herds.
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Professionals from the dairy sector commonly believe that the results of Global Dairy Trade (GDT) auctions are a good leading indicator for prices of dairy commodities. The…
Abstract
Purpose
Professionals from the dairy sector commonly believe that the results of Global Dairy Trade (GDT) auctions are a good leading indicator for prices of dairy commodities. The purpose of this paper is to test that hypothesis for prices of key dairy commodities (skimmed milk powder (SMP), whole milk powder (WMP), butter and cheddar) in the main dairy markets (the US, EU and Oceania).
Design/methodology/approach
The leading properties of the GDT auctions are investigated using vector error correction models (VECM).
Findings
The results show that prices at GDT auctions may be treated as a benchmark for global prices of WMP and SMP as they affect prices in all considered markets. However, in case of EU market the relationship with the GDT is bidirectional. GDT prices reveal some leading properties also in cheddar market, however price relationships in this market are much more complex. In case of butter market, GDT can be regarded as a benchmark only for Oceania.
Practical implications
The results of this paper improve knowledge on price transmission in dairy markets, show the role of the GDT auctions in the price setting process, and thus may help professionals from the dairy sector to formulate their price expectations more precisely.
Originality/value
Despite the fact that many professionals from the dairy sector treat GDT auctions as a benchmark, so far their leading properties have not been scientifically proven.
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Joleen C. Hadrich, Christopher A. Wolf and Kamina K. Johnson
The structural change of the dairy industry has been a long-term process with fewer, larger dairy herds in all regions. The purpose of this paper is to evaluate whether this…
Abstract
Purpose
The structural change of the dairy industry has been a long-term process with fewer, larger dairy herds in all regions. The purpose of this paper is to evaluate whether this structural change is leading to less income and wealth equality across dairy farms and how these factors differ across the USA.
Design/methodology/approach
Income and wealth inequality of US dairy farms was estimated by Gini coefficients using data from the 2000 and 2010 ARMS dairy costs and returns data. A population-level quantile regression was estimated at decile increments to determine the factors that affect net farm income (NFI) and net worth (NETW) and if they changed across the time periods.
Findings
Adjusted-Gini coefficients were estimated and indicated that income inequality was greater than wealth inequality across US dairy farms. Results of the quantile regressions confirm regional differences exist with dairy farms in Mountain regions consistently having lower NFI and NETW relative to farms in the Lake States region when factors such as herd size were equal. Life cycle effects were not observed for NFI, but present within NETW estimates across the ten years.
Originality/value
This analysis estimates industry-specific-adjusted Gini coefficients to determine if income and wealth inequality exist.
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Mary Hendrickson, William D. Heffernan, Philip H. Howard and Judith B. Heffernan
Discusses the restructuring of the food production, processing and retailing sectors in the USA. Describes different methods of vertical and horizontal integration that have…
Abstract
Discusses the restructuring of the food production, processing and retailing sectors in the USA. Describes different methods of vertical and horizontal integration that have occurred. Goes on to discuss the consolidation of business in retailing in particular. Refers to the relationships that are being formed between the supermarket chains, for example Wal‐Mart and Kroger, and dominant food‐chain clusters. Considers whether or not smaller retail chains and wholesalers should feel threatened by this consolidation. Takes the dairy sector in the USA as a case study in the restructuring of the retailing and processing sectors.
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This case describes the challenges faced by Amul in organising dairy farmers into a co-operative and creating continuous opportunities for value addition. Participants in the case…
Abstract
This case describes the challenges faced by Amul in organising dairy farmers into a co-operative and creating continuous opportunities for value addition. Participants in the case discussion are required to review the developments in the organisation and recommend a strategy for the future.
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Mario Ortez, Nicole Olynk Widmar, Mindy Lyn Mallory, Christopher Allen Wolf and Courtney Bir
This article quantifies public sentiment for dairy products using online media and investigates potential relationships between online media, both volume and sentiment, and future…
Abstract
Purpose
This article quantifies public sentiment for dairy products using online media and investigates potential relationships between online media, both volume and sentiment, and future prices of Class III milk.
Design/methodology/approach
Netbase, an online media listening platform, was used to quantify US generated online media sentiment and number of mentions regarding dairy products. Granger-causality tests and Impulse Response Functions (IRFs) were used to study relationships between online media derived data and dairy futures prices.
Findings
Milk and cheese have more mentions in online media than yogurt and ice cream. Online media net sentiment around milk was the lowest of the dairy products studied. Granger-causality tests showed that Class III milk price Granger-causes net sentiment of dairy as a whole and of fluid milk. Price additionally Granger-causes mentions of milk, ice cream and yogurt. Notably, milk and ice cream mentions Granger-cause the Class III milk price. IRF's reveals that increases in mentions have a positive, albeit small, effect on the Class III milk price that is statistically significant for ice cream, but not for milk. IRF's directionality of the relationship from price to online media derived data was mixed.
Originality/value
This is the first time that relationships between online media -volume and sentiment- and futures prices of an agricultural commodity are researched. Exploration of futures markets alongside online media advances the use of online media to glean insights in financial, along with food and agricultural markets.
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Trump has attacked Canada’s system of supply management and imposed a 20% tariff on Canadian softwood lumber in his first major trade action. This signals the opening moves in a…
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DOI: 10.1108/OXAN-DB220577
ISSN: 2633-304X
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Dingqiang Sun, Jikun Huang and Jun Yang
– The purpose of this paper is to empirically examine how China's food safety standards affect agricultural trade in the case of dairy products.
Abstract
Purpose
The purpose of this paper is to empirically examine how China's food safety standards affect agricultural trade in the case of dairy products.
Design/methodology/approach
A gravity model is applied to quantitatively address the impacts of changing food safety standards in China in the case of its dairy imports. The paper considers the trade impacts of not only a specific hazard substance but also overall strictness of safety standards.
Findings
The paper shows that changes in food safety standards of dairy products have no effect on China's dairy imports. The finding is not particularly surprising considering special characteristics of China's food safety standards. Given the fact that China's safety standards are relatively lower than that in its major exporters, the trade-impeding effect may not be substantial.
Research limitations/implications
First, this study is unable to estimate the trade-enhancing and trade-impending effects separately. Second, the study does not account for a potential endogeneity issue associated with food safety standards.
Originality/value
This paper contributes to the debate on how food safety standards affect trade by demonstrating that safety standards in developing countries like China can affect international trade differently from that in developed countries. Although results are specific to China's dairy imports, the explanations are applicable to food safety standards in other developing countries.
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Oday Kamal, David Brown, Prabhu Sivabalan and Heidi Sundin
– The purpose of this research is to understand how accounting information mobilises stakeholder salience at an industry level.
Abstract
Purpose
The purpose of this research is to understand how accounting information mobilises stakeholder salience at an industry level.
Design/methodology/approach
A case study method using an explanation building approach was applied to gather information surrounding dairy industry stakeholder uses of accounting information to communicate their salience, in the historical context, leading to, and the events surrounding the milk price “war” in Australia. The Mitchell et al. (1997) stakeholder salience framework was used to advance our understanding of the different ways accounting can be mobilized by stakeholders with different types of salience attributes, at an industry level.
Findings
This empirical analysis produces two insights into the relation between accounting and stakeholder salience. First, there is evidence as to how accounting information impacted on stakeholder salience at an industry level by demonstrating how accounting information (in)directly communicated and justified the increase of a stakeholder’s level of salience. Second, the Mitchell et al. (1997) model is extended by attributing levels of importance to each stakeholder attribute. It was found that, in this setting, power was the most salient attribute of the three, usurping legitimacy and urgency, leading to the outcomes observed.
Research limitations/implications
This paper acknowledged the usual method limitations related to this style of qualitative research, including investigator bias and lack of statistical generalization. In addition, a second set of limitations critiques the paper’s operating framework. While the Mitchell et al. (1997) stakeholder salience model proved to be a suitable choice for this research, it is limited in the way in which stakeholder attributes are presented and used to identify stakeholders. In addition, further light may be provided on the distinctions between the different magnitudes of power, legitimacy and urgency between stakeholders after suggesting that they are not equally weighted.
Practical implications
The milk price “war” remains a high-profile discussion amongst the general public. This research contributes to a better understanding of how different players (stakeholders) have their salience claims mobilized through accounting information. Practitioners in the dairy industry might reflect on the findings to enhance their legitimacy pursuits in future negotiations with their counter-parties, and better deploy accounting to achieve the same.
Social implications
The findings speak more broadly to notions of social equity in stakeholder relations, for the production and distribution of a product that is ubiquitously used in society (dairy – milk). The findings from this study therefore have potential to assist policymakers better understand the strategies adopted by stakeholders to impose their influence and defend their claims in a public forum, using accounting information.
Originality/value
The authors contend that the article provides evidence at an industry level, that is lacking in extant management accounting research (Collier, 2000). To this extent, an original contribution is claimed. The paper is also valuable to management accounting and management researchers studying stakeholder salience, and is one of the first to investigate this issue at an industry level, as well as express how accounting mobilises this salience.
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