The Effectiveness Of Market Development Programs For U.S. Dairy Products

This study examines the effectiveness of U.S. dairy export promotion programs on increasing foreign demand and enhancing producers' revenues. The analysis is based on two econometric models. An import demand equation based on panel data is derived to measure the responsiveness of U.S. dairy import demand in various countries to dairy export promotion. The Armington model is adopted to analyze both the short-run and long-run promotion effects on the market share. Then, the import demand model is used to simulate several in-sample scenarios involving alternative funding levels for export promotion to calculate average and marginal benefit-cost ratios for the programs. The results of this study indicate that the market development programs have increased the demand for U.S. dairy products in the foreign markets over the years, and they have generated an impressive positive return to producers for each dollar spent on promotion. It appears that market development programs were underfunded from a producer-welfare perspective unless the marginal rate of return on alternative uses of promotion was high.

Name thesis:degree_name

M.S., Agricultural Economics

Level thesis:degree_level

Master of Science

Discipline thesis:degree_discipline

Agricultural Economics

Grantor

Cornell University

Year dc:date.issued

2014

Author dc:creator

• Song, Liang

Committee member dc:contributor.committeemember

• Gomez, Miguel I.

• Market Development Program
• Dairy Products
• Export

Language dc:language.iso

en_US

Handle dc:identifier.uri

https://hdl.handle.net/1813/37101

OAI identifier oai:identifier

oai:ecommons.cornell.edu:1813/37101