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1 National Research Institute of Agricultural Economics, Ministry of Agriculture, Tokyo 114, Japan
2 Department of Agricultural, Resource, and Managerial Economics, Cornell University, Ithaca, NY 14853
The objective of this paper is to examine the similarities and differences between the dairy programs in the US and Japan and the implications of those programs for development of milk market models. The basic framework of the US and Japanese dairy policies is very similar. Price supports for milk used for manufactured dairy products, classified pricing and revenue pooling, and import quota are major components of both programs. Interesting differences in each component are also present. Price discrimination between fluid and manufacturing milk products must be accounted for in the development of models of the dairy industries in both countries.
Key Words: Japanese dairy policy milk market models price discrimination
Submitted on October 28, 1993
Accepted on February 8, 1994
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