Chapter five analyzes the structure of the organic dairy industry, and the organic milk farm price.Chapter six examines the role of Organic Valley cooperative in the pricing of organic raw milk and in supply chain coordination, and the challenges organic dairy farmers and their cooperative are facing.One reason for this shortage has been the unwillingness of conventional dairy farmers to convert to organic operation due to lack of information about future demand.
For this reason, the vector error correction model is the best fit for the study.
In addition, the group's expenditure is found to be endogenous and income is used as an instrument for group expenditure.
The second chapter provides a detailed theoretical framework of consumer behavior and empirical models for consumer demand studies.
The third chapter surveys the literature of organic milk demand.
The general objective of this study is to examine the organic dairy industry supply-demand coordination challenge with a specific emphasis on the consumer demand side.
Specifically, my first objective is to examine consumer demand for organic and conventional milk in the U. and how consumer response to price and income changes.The popularity of natural rubber as an important raw material was distorted in the post-World War Two period.It received heavy competition from synthetic rubber.Since 1989, the price of organic milk has steadily increased with a clear trend.However, the price of conventional milk has fluctuated from year to year, and even from month to month.The third objective is to examine a supply chain coordinator in the organic dairy industry, Organic Valley, and its internal decision-making challenges in balancing supply and demand, and stabilizing the price of raw milk in the organic milk value chain.The first chapter of this dissertation lays out the background, motivation and research objectives of this study.This thesis is part of the collection entitled: UNT Theses and Dissertations and was provided by UNT Libraries to Digital Library, a digital repository hosted by the UNT Libraries.It has been viewed 743 times, with 47 in the last month.Compared with conventional milk, the organic milk farm price is more stable and predictable from month to month.I hypothesize that the duopsony market structure and the cooperative play important roles in the pricing of organic raw milk and protect organic dairy farmers' profitability.