Date of Award:

12-2008

Document Type:

Thesis

Degree Name:

Master of Business Administration (MBA)

Department:

Economics and Finance

Department name when degree awarded

Economics

Committee Chair(s)

E. Bruce Godfrey

Committee

E. Bruce Godfrey

Abstract

This study analyzes the effectiveness of the Cooperatives Working Together (CWT) program. This program is believed to have improved the farm-level price of milk since it began in July 2003. To date, no publicly available analysis addressing this question has been conducted. Total milk removed by the program was determined and expressed as a percentage of total milk produced nationally during the same time frame. Elasticity measures from prior studies were adapted to determine the impact of the program. This analysis suggests the program has had a significantly positive effect on the price of milk. Issues dealing with future action were identified and discussed.

In addition to analyzing the effectiveness of the CWT program, a survey was conducted among Utah dairy producers who had recently exited the industry. It was determined that the majority of these producers were older and did not exit through the CWT program. The primary reasons for their exit were their older age, low milk prices, and lack of family interest in continuing to operate the dairy.

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