The Impact of Paying for Milk Solids on the Performance of the Dairy Supply Chain and Consumers

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Lucas Campio Pinha ◽  
Marcelo José Braga ◽  
Glauco Rodrigues Carvalho
Keyword(s):  
Supply Chain ◽  
Dairy Products ◽  
Dairy Industry ◽  
Consumer Welfare ◽  
Main Interest ◽  
Generalized Model ◽  
Milk Components ◽  
Solids Content ◽  
Milk Solids ◽  
The Impact

AbstractAn important particularity of the dairy chain is that many times the main interest of the dairy industry relies on milk components, the so-called milk solids. Paying for milk solids content is a way of trying to create incentives for farms to invest in improving the solids content. However, little is known about the effects of this type of payment on the dairy supply chain. The paper proposes a microeconomic model to analyze the effects of paying for milk solids content on the performance of farms, dairy processors and consumer welfare. Based on the model, we find that this mechanism improves the yield of milk in producing dairy products and benefits farms, processor and consumers simultaneously. Extensions demonstrate the robustness of results and provide a generalized model and conditions for which these results are valid.

scholarly journals Overview of the Potential Impacts of Climate Change on the Microbial Safety of the Dairy Industry

Foods ◽  
2020 ◽  
Vol 9 (12) ◽  
pp. 1794
Author(s):  
Rodney J. Feliciano ◽  
Géraldine Boué ◽  
Jeanne-Marie Membré
Keyword(s):  
Climate Change ◽  
Supply Chain ◽  
Dairy Products ◽  
Dairy Industry ◽  
Mitigation Strategies ◽  
Raw Material ◽  
Quantitative Microbial Risk Assessment ◽  
Microbial Safety ◽  
Microbial Infection ◽  
The Impact

Climate change is expected to affect many different sectors across the food supply chain. The current review paper presents an overview of the effects of climate change on the microbial safety of the dairy supply chain and suggest potential mitigation strategies to limit the impact. Raw milk, the common raw material of dairy products, is vulnerable to climate change, influenced by changes in average temperature and amount of precipitation. This would induce changes in the microbial profile and heat stress in lactating cows, increasing susceptibility to microbial infection and higher levels of microbial contamination. Moreover, climate change affects the entire dairy supply chain and necessitates adaptation of all the current food safety management programs. In particular, the review of current prerequisite programs might be needed as well as revisiting the current microbial specifications of the receiving dairy products and the introduction of new pretreatments with stringent processing regimes. The effects on microbial changes during distribution and consumer handling also would need to be quantified through the use of predictive models. The development of Quantitative Microbial Risk Assessment (QMRA) models, considering the whole farm-to-fork chain to evaluate risk mitigation strategies, will be a key step to prioritize actions towards a climate change-resilient dairy industry.

Implications of Price Matching in Supply Chain Negotiation

2021 ◽  
Author(s):  
Weixin Shang ◽  
Gangshu (George) Cai
Keyword(s):  
Supply Chain ◽  
Social Welfare ◽  
Wholesale Price ◽  
Consumer Welfare ◽  
Problem Definition ◽  
Nash Bargaining ◽  
Price Matching ◽  
The Impact ◽  
Multiple Buyers ◽  
Wholesale Pricing

Problem definition: Few papers have explored the impact of price matching negotiation (PM), in which a channel matches its price with the resulting wholesale price bargained by another channel, on firms’ performances, consumer welfare, and social welfare, with and without supply chain coordination. Academic/practical relevance: Negotiation has been widely seen in determining both uniform and discriminatory wholesale prices, which affect outcomes of competitive supply chain practices. Methodology: To characterize the PM mechanism, we use game theory and Nash bargaining theory to compare PM with simultaneous negotiation (SN) through a common-seller two-buyer differentiated Bertrand competition model. Results: Our analysis reveals that PM can benefit the seller but hurt all buyers, which is at odds with some fair wholesale pricing clauses intending to protect buyers. Under coordination with side payments, however, all firms can conditionally benefit more from PM than from SN. Despite firms’ gains, PM leads to less consumer utility and social welfare compared with SN, unless the second buyer in PM is considerably less powerful than the first buyer. Coordination further worsens PM’s negative impact on consumer utility and social welfare. Moreover, the existence of a spot market can increase the wholesale price in PM, hurting buyers, consumers, and society. Furthermore, the qualitative results about PM remain robust under an alternative disagreement point for PM, multiple buyers, and other extensions. Managerial implications: This paper delivers insights on when price matching in supply chain wholesale price negotiation can benefit a seller, buyers, consumers, and society in a variety of scenarios. It advocates how managers can use PM to their own advantages and provides rationale to decision makers for policy regulations regarding wholesale pricing.

scholarly journals The Influence of Buyer Power on Supply Chain Pricing with Downstream Competition

2019 ◽  
Vol 11 (10) ◽  
pp. 2924
Author(s):  
Qiu Zhao
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Consumer Welfare ◽  
Retail Price ◽  
Retail Market ◽  
Pricing Decisions ◽  
Buyer Power ◽  
Downstream Competition ◽  
The Impact ◽  
Vertical Market

This paper aims to investigate the impact of buyer power on the wholesale price and retail price of, in the case, downstream competition. Based on a summary of the competitive characteristics of China’s retail market, a model of a vertical market was constructed to examine the influence of buyer power on the pricing decisions of manufacturers and retailers, and to analyze the mechanism of price decisions. The results showed that the buyer power of national retailers reduced the wholesale price, but the impact on local retailers remained uncertain. Although increasing buyer power initially increased the local retailer’s wholesale price and caused the ‘waterbed effect’, we found that this effect reverted when the buyer power reached a point at which the ‘anti-waterbed effect’ appeared. The opposite was true of the retail price. However, buyer power reduced the average retail price, and consumer welfare improved.

scholarly journals IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR

2021 ◽  
Vol 33 (2) ◽  
pp. 86-96
Author(s):  
Charu Bisaria
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Consumer Behavior ◽  
Dairy Products ◽  
Job Loss ◽  
Consumer Behaviour ◽  
Lower Income ◽  
Supply Chain Disruption ◽  
Pay Cuts ◽  
The Impact

A deadly virus has forced entire mankind to be confined to their homes. While many businesses were permanently shut, most others are still trying to sustain this less profit-generating period. Numerous workers are facing pay-cuts or job loss. This theoretically implies a major impact on the economies of countries with purchasing power of customers reduced due to lower income and supply chain disruption due to strict curbs. However, industries based on Information Technology, e-commerce, dairy products etc, thrived and continued to meet consumers’ demands. This particular study aims to analyze the impact of COVID-19 on consumer behavior. The impact shall be studied with respect to various parameters such as gender, age, income etc of consumers.

scholarly journals Research on Profit Distribution Between Dairy Farmers and Manufacturing Enterprises in Dairy Supply Chain Based on Qualified Rate

CONVERTER ◽  
2021 ◽  
pp. 607-625
Author(s):  
Teng Fei, Cuixia Li
Keyword(s):  
Supply Chain ◽  
Dairy Products ◽  
Dairy Industry ◽  
Coordination Mechanism ◽  
Normal Operation ◽  
Quality And Safety ◽  
Dairy Farmers ◽  
Safety Level ◽  
Profit Distribution ◽  
Dairy Processing

As an indispensable industry for the health and prosperity of the Chinese nation, dairy industry is a symbolic industry of agricultural modernization and a strategic industry of coordinated development of primary, secondary and tertiary industries.With the rapid development of China's dairy industry, China’s dairy product quality and safety risks still exist.The imbalance of profit distribution is one of the important reasons for the confusion of dairy market and quality and safety problems.The essence of the normal operation of the dairy supply chain and the guarantee of the quality and safety of dairy products lies in the correct handling and coordination of the interest relationship between the enterprises in each node of the supply chain.Reasonable benefit coordination mechanism and fair benefit distribution mode are of great significance to ensure the quality and safety of dairy products, maintain the stable relationship of dairy supply chain, and promote the healthy and sustainable development of China’s dairy industry.This paper discusses the optimal quality and safety level and optimal revenue of two-stage dairy supply chain based on the pass rate of dairy farmers and dairy processing enterprises under decentralized and centralized decision-making.In order to improve the quality efforts of dairy farmers, the internal and external loss sharing contract is designed, that is, dairy farmers and dairy processing enterprises share consumer losses, whilemanufacturing enterprises provide certain quality cost subsidies for dairy farmers. Finally, through the example analysis, it is verified that the benefit sharing and risk sharing between dairy farmers and national processing enterprises can be realized through the contract.Through contract coordination, the profit distribution of dairy farmers and processing enterprises and the quality and safety level of supply chain were optimized, and the importance of quality control in raw milk production was further verified.

scholarly journals Influence of Nanovulin-VRKh on cattle thermoregulation and chemical composition of milk

2020 ◽  
Vol 10 (1) ◽  
pp. 139-144
Author(s):  
M. S. Gruntkoskyi ◽  
V. M. Kondtratiuk ◽  
S. M. Gryshchenko ◽  
N. P. Hryshchenko ◽  
I. S. Mytyay
Keyword(s):  
Dairy Products ◽  
The Body ◽  
Biologically Active ◽  
Cow Milk ◽  
Control Groups ◽  
Experimental Animals ◽  
Nonfat Milk ◽  
Prolonged Effect ◽  
Solids Content ◽  
Milk Solids

The current research described the effect of neurotropic and metabolic non-hormonal biologically active medicine Nanovulin-VRKh © on the milk yield amount and the milk quality. Two cow groups were under study: the experimental and the control groups, each including four cows. The results showed that two of the neurotropic and metabolic Nanovulin-VRKh injections made 12 and 24 hours after the insemination did not effect the body thermoregulation of cows. Administration of the Nanovulin-VRKh contributes to stable fat formation in cow milk. Increased content of protein, nonfat milk solids, stable fat formation in milk were due to Nanovulin-VRKh administration. It was also established that, in the milk of experimental animals were administered the Nanovulin-VRKh, the pronounced effect of the drug on the protein, fat and nonfat milk solids content was observed, and the prolonged effect on these indices was reported during the fourth milking. Introduction of Cuprum aqua-chelate into the drug did not has toxic effect on the animal body and therefore would not effect the human health through the dairy products.

scholarly journals DAIRY INDUSTRY? READY TO ADOPT BLOCK CHAIN TECHNOLOGY?

2020 ◽  
pp. 67-70
Author(s):  
Ramajeyam Sekar
Keyword(s):  
Supply Chain ◽  
Business Model ◽  
Dairy Products ◽  
Dairy Industry ◽  
Digital World ◽  
Promising Solution ◽  
Block Chain ◽  
The Right ◽  
Work Done ◽  
Milk And Dairy Products

Author reviewed various manuscripts of work done by authors and presenting and it is abstract in summarized fashion. In India, block chain technology is very primitive stage in adoption, however the looking the features available in the technology, it looks more interesting to take up for implementation. In today digital world, it is getting more imperative to build trusted business model which will enable all stake-holders in the supply chain trust each other and conduct business.. In health conscious world, today the customers / consumers are to be empowered brought into the trusted business model of food world, particularly the consumption of Milk and Dairy products, food products etc, the source of the material and its various nutrients are to be validated by the consumer and ensure that the consumer is purchasing the right products, which is where the BLOCK CHAIN technology is going to be very promising solution.

scholarly journals Retracted: Features of Planned Supply Chains in the Dairy Industry

2020 ◽  
pp. 51-62
Author(s):  
Rodion S. Rogulin
Keyword(s):  
Quality Control ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Dairy Products ◽  
Dairy Product ◽  
Dairy Industry ◽  
Efficiency Index ◽  
Systematic Analysis ◽  
Chain Management

RetractedModern dairy product supply chain management systems help minimize the production and distribution of unsafe or substandard products. The purpose of this article is to assess the capabilities and level of development of planning and quality control systems in the field of supply chain management in the dairy industry using the example of Russia, Kazakhstan and Lithuania. Through a systematic analysis of statistical information, descriptors of the effectiveness of logistics supply chains and development directions of the dairy industry in the field of improving planning and quality control are identified. This study uses secondary statistics from open sources as a basis for comparative analysis. The main indicators selected for analysis are: the efficiency index of logistics, the number of dairy products, milk and dairy products and other indicators of the dairy industry. It is concluded that an effective supply chain plays a very important role for the development of the dairy industry and improving food safety in the supply chain of these products.

The Impact of a Potential Public/Private Initiative on a Defined Region of the South Suburban Chicago Metropolitan Area

2019 ◽  
pp. 14-32
Keyword(s):  
Supply Chain ◽  
Economic Impact ◽  
Impact Analysis ◽  
Census Data ◽  
Economic Benefits ◽  
Local Economy ◽  
Market Area ◽  
State And Local ◽  
The University ◽  
The Impact

The university is considered one of the engines of growth in a local economy or its market area, since its direct contributions consist of 1) employment of faculty and staff, 2) services to students, and supply chain links vendors, all of which define the University’s Market area. Indirect contributions consist of those agents associated with the university in terms of community and civic events. Each of these activities represent economic benefits to their host communities and can be classified as the economic impact a university has on its local economy and whose spatial market area includes each of the above agents. In addition are the critical links to the University, which can be considered part of its Demand and Supply chain. This paper contributes to the field of Public/Private Impact Analysis, which is used to substantiate the social and economic benefits of cooperating for economic resources. We use Census data on Output of Goods and Services, Labor Income on Salaries, Wages and Benefits, Indirect State and Local Taxes, Property Tax Revenue, Population, and Inter-Industry to measure economic impact (Implan, 2016).

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