Naturally, land-grant institutions have been enlisted in the cause to demote supply management. After all, land-grants need money too.
Richard J. Sexton is Professor, Department of Agricultural and Resource Economics, University of California, Davis has been called to duty. Milk Producers Council has generously made his thoughts available:
Dr Sexton lays out a claim:
“Both the demand and supply of raw milk in the U.S. are price inelastic in the short run, meaning that small shifts in demand or supply cause proportionally larger changes in price. A rule of thumb for the price elasticity of demand for raw milk is ‐0.5, meaning that a one percent increase in production will cause a two percent decrease in producer price, other factors constant.”
Rule of thumb is no rule at all and “other factors” never remain “constant.” The point is many people believe these experts without questioning the validity of the data. None of the data is precise.
Barbra Martin has a blog:
and she would like to see the data audited. She is asking for support in that effort.