IMPACT OF ULTRA-HIGH TEMPERATURE MILK ON THE U.S. DAIRY INDUSTRY
Abstract
Milk pasteurized by Ultra-High Temperature (UHT) methods and packaged aseptically could eliminate perishability as a primary characteristic of fluid milk. Relative costs of processing, distributing, and retailing were estimated using economic engineering, linear programming, and simulation techniques. Costs of UHT containers were sharply higher, but other processing and distribution costs were similar to traditional fluid products. Retailing costs for UHT were somewhat lower. Equilibrium retail UHT prices ranged from 3 to 12 percent higher depending on the classification decision under Federal orders. UHT would capture only a modest share of the fluid market in any case. Adoption of UHT technology was not found to have a substantial effect on the costs of handling supply-demand variability for fluid milk.
Degree
Ph.D.
Subject Area
Agricultural economics
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