Organization Rural Business Research Unit at the University of Nottingham, Nottingham, UK

Year 2011

Recent variability in farm gate milk prices has led to increased interest in milk selling arrangements. Analysing data for 220 conventional English dairy producers reveals significant differences in the milk contract and selling arrangements of producers receiving the top 25% of milk prices, when compared to producers receiving the bottom 25% of milk prices. Hedonic regression analysis estimates the value of the individual attributes of milk selling arrangements. Milk price variation is likely to hasten further structural change in dairying.