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Component Values for Milk Used in Cheddar Cheese
Author(s) -
Coggins Jay S.,
Hammond Jerome W.
Publication year - 1994
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349463
Subject(s) - component (thermodynamics) , food science , business , cheesemaking , milk products , economics , agricultural science , chemistry , environmental science , thermodynamics , physics
Interest in valuing the solids components of milk has continued to rise in recent years. A component valuation scheme for milk is devised to be used in cheddar cheese manufacture. Using daily plant‐level data, and employing a flexible functional form, a plant‐specific cheese yield function is estimated. This yield relationship serves as the basis for a valuation scheme that divides the value of all end products among three solids components of milk. These values are compared to a pricing scheme that recently appeared in the Great Basin Federal Milk Order. The plan presented here places a higher value upon milk of high fat test than does the order plan.