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Analysis of Finnish Dairy Marketing Programs and Policies—Implications to the United States and Finland¹

Department of Agricultural Economics, University of Wisconsin, Madison 53706

ABSTRACT

The dairy industry is one of the most important agricultural industries in the U.S., accounting for approximately one-fifth of total agricultural income. However, it has had serious surplus and income problems. Surplus production, price instability, and inequitable income have been the rule, rather than the exception in dairying during much of the past half century. In recent years United States Department of Agriculture (USDA) price support purchases have been averaging about 5% of production, and 7% of dairy farm gross income (6). Various production, pricing, regulatory and administrative programs and policies have been attempted, or discussed, as a way of eliminating or at least reducing the dairy problem in the U.S.

Past, present, and alternative U.S. dairy programs have been thoroughly analyzed for their potential for solving the U.S. dairy problem. However, implications to the U.S., of results of dairy programs in other countries with problems similar to ours, have had little analysis,

¹ Material for this paper is based on research by the author with personnel from Finnish governmental agencies, universities, dairies and farm and trade organizations, while working in Finland under a U.S. Educational Foundation Ful-bright Grant in August-December 1970. Grateful thanks are due all these individuals for help in obtaining material for this paper.