Economic Factors of Dairy Consumption and Production in Nebraska

The problem of this study is largely one of obtaining information about factors by which the dairy production in Nebraska is influenced. These factors have been known to exist, yet in the past were partly overlooked. Quantities of the farm dairy marketings.The ratio of the marketings per capita farm labor seems to be influenced by the competition emerging from alternative utilization of farm labor, and differences in the specific forms of farm labor.The effect of such differences is relatively small compared with the large differences that exist in the density of farming population. Qualities of farm dairy product.The quality of the product seems also to be dependent on the density at which it is available for assembling.Nebraska has wide areas in which conditions are adverse for a high quality product. Transportation.While small quantities do not warrant frequent and expensive assembling operations, large quantities are transported on good roads over great distances, apparently without excessive costs. Prices.Insufficient information became available to study the effect of local differences in farm prices on the quantities marketed. The industry.When compared with the multiproduct dairy plants, the butter industry in Nebraska seems to lack inventiveness and flexibility.It is apparently operating on the edge of the crowded butter market as a result of a product made from a sub-average raw material, and is apparently more so endangered by any decrease in individual plant production, since this would have an adverse effect on the economies of scale. Consumption.Some studies indicate that butter has lost (and might still be losing) consumers largely due to the competition from margarine and from other fats, especially in the off-table uses such as frying, cooking, baking, etc.There is some indication that this trend started in 1942 when large quantities were diverted from the civilian market. Advisor: Clarence J. Mille