Table of Contents 



Page 



Preface 1 



Dairy Adjustments in the Northeast 5 



An Analysis of Potential Production and Market Equilibrium 5 



Objectives 6 



Description of the Northeast Dairy Region 6 



Characteristics of the Northeast Dairy Region 6 



Characteristics of Commercial Dairy Farms 7 



Market Structure and Pricing 8 



Consumption and Utilization 10 



Methodology for Establishing Supply Functions 10 



Selection of Areas Within the Northeast 11 



Farm Sample and Sampling Procedure 13 



New England 13 



New York, New Jersey, Northern Pennsylvania 13 



Pennsylvania, Maryland, Delaware, and West Virginia 14 



Farm Survey Data 15 



Other Data 15 



Method of Developing Representative Farms 16 



Grouping of Farms 17 



Development of Restrictions and Machinery Complements 19 



The Linear Programming Models 19 



Comparability of Models for the Various Areas 20 



Choice of Production Activities 20 



Extent of Resource Constraints 21 



Variable Prices 21 



A Linear Programming Model for One of the Representative Farms 23 



Linear Programming Solutions for a Representative Farm 24 



Area and Regional Aggregate Milk Supply 26 



Resource Bases for Area and Regional Milk Supply, 1960 and 1965 26 



Area Supply Functions with 1960 and 1965 Resource Base 26 



Regional Supply Functions 27 



Regional Supply Functions with no Area Farm Price Differentials 



and 1960 and 1965 Resource Base 27 



Regional Supply Functions with 1965 Milk Price Differentials 



and 1960 and 1965 Resource Base 28 



Point Elasticities of Supply with 1960 Resource Base and 1965 Area Prices 28 



Evaluation of Micro to Macro Research Procedure for Estimating 



Supply Functions 31 



Some Limitations of the Generalized Approach 32 



Particular Problems Associated with This Study 33 



Contribution of Micro to Macro Research 33 



Some Applications of the Aggregate Milk Supply Functions 34 



Demand Functions 34 



Regional Demand Function Under Competition Conditions 35 



Regional Price-Quantity Disappearance Curve Under Classified Pricing 36 



Implications of the Price-Quantity Equilibriums 37 



Appendix A 41 



Appendix B 45 



