Wayne H. Howard

Dynamic Adjustment in the U.S. Dairy Industry

A dual model is used to examine the dynamic structure of the U.S. dairy industry. Properties implied by the theory of the competitive firm and independent adjustment of two quasi-fixed inputs, labor and herd size, are tested and not rejected. Instantaneous adjustment, however, is soundly rejected for each quasi-fixed input. Input adjustment to optimal levels is estimated to take about two years for labor and ten for cows. Quality adjustments of the labor and cow series do not fully embody the technological change that has occurred in this industry over the study period.

Murgo Farms Inc.: HACCP, ISO 9000, and ISO 14000

Murgo Farms Inc., addresses the challenges of choosing between the Hazard Analysis Critical Control Point (HACCP), International Organization of Standardization (ISO) 9000, and ISO 14000 systems for a business with grain farming, elevator and spraying enterprises. Murgo has recently entered markets that are more quality oriented and wishes to expand its activities in those markets. The President wonders whether HACCP or ISO 9000 might help that expansion. However, the company is also faced with significant environmental risks due to its spraying and manure spreading activities and its proximity to a local municipal water source. There are good reasons for Murgo to consider each of the systems, but there is also the question of whether the benefits for implementing any system are sufficient to do so immediately.

In search of excellence on the farm: An example of case research

Case research is presented as an alternative method of farm management research. Results from traditional farm management research are discussed, and then case research is defined and case research methods are outlined. Strengths and limitations of the two research methods are compared. Recommendations based upon results from four case studies of excellent Ontario hog farms are presented as an example of case research.

Characteristics required for success in management of agribusiness firms: An international perspective

The relative importance of various skills and attributes for success in business of entry-level employees as perceived by managers of agribusinesses in Australia, Canada, and the US are compared. The Agribusiness Management Aptitude Skill Survey (AGRI-MASS) was the instrument used. All three countries ranked personal qualities and communications skills highest, followed by business and economic skills, technical skills, computer and quantitative skills, and experience, in relative order.

Human resource management on the farm: Attracting, keeping, and motivating labor

Current human resources management policies on Ontario swine farms were evaluated in terms of attracting, keeping, and motivating labor. A survey of swine farm employers and employees indicated that swine farm employees had lower wages, fewer benefits, and worked longer hours than their nonagricultural counterparts. Female employees were paid less than male employees even though there was no difference in other employment or educational characteristics. Employers indicated difficulty attracting employees, but their employee turnover rate was lower than in nonagricultural industries. No relationships were found between employer|farm characteristics and motivation proxies.

Estimating the effectiveness of extension information systems using farm trials and subjective probabilities

A method of combining survey data and Dairy Herd Improvement Association (DHIA) records to achieve low cost farm trials is presented. Farm trials and surveys of current practices and production responses are useful to identify yield gaps between expectations predicted from experimental findings and actual field results. Different management schemes can be ranked using subjective probabilities and stochastic dominance to enhance successful implementation of research findings and to increase the feedback between researchers, extension workers, and producers. A survey of current masitis control practices and expected milk yield response is the example. Combining survey results with DHIA records allowed estimating the relationship between somatic cell counts (SCC) and milk yield. Eliciting beliefs about the relationship between sec and milk yield showed that producers agreed with predictions from the statistical model. Subjective probabilities about SCC and mastitis control practices showed that our sample of experts and producers consistently ranked the different practices but extension agents had no consensus about the the most or least effective ones.

Linkages Between Regulated and Unregulated Markets: The Case of Milk Supply in Kenya

Linkages between the regulated and unregulated dairy markets in Kenya were examined using an econometric model of the fluid milk intake for eight processing plants. Counter-intuitive results were obtained: an increase in the regulated price was significant in decreasing intake in the regulated market, indicating that a price increase in the regulated market also increased price and quantity supplied in the unregulated market. Lagged rainfall was a proxy for available feed and was highly significant in explaining milk intake in the regulated market.