Investigating the Economic Factors Affecting Milk Supply in Iran, Generalized Method of Moments (GMM)

Subject Areas : Agricultural Economics Research

reza ranjpour ¹ (economic, university of tabriz, tabriz, iran)
habib aghajani ² (economic, university of tabriz)
akbar salmani ³ (university of tabriz)

Received: 2017-09-24 Accepted : 2021-06-13 Published : 2021-10-23

Keywords: milk supply, animal husbandry, milk price, dynamic pattern, generalized method of moment,

Abstract :

Introduction: Given the importance of milk both in the production sector (due to job creation and income generation for activists in this field) and in demand and consumption (due to its impact on public health, etc.) one of the important goals of government policy in the agricultural sector can be to increase the supply and demand of milk.
Materials and Methods: The purpose of this study is to investigate the effect of economic factors affecting milk supply in Iran based on the data collected from the provinces. The research model was estimated using the panel data approach in the form of generalized method of moments.
Findings: According to the results of model estimation, milk supply in Iran is positively affected by the number of livestock and negatively affected by the cost of livestock inputs. Also, with a one-year break, milk prices and pasture area have a positive effect and meat prices have a negative effect on milk supply.
Conclusion: Breeding of lactating cattle, price support, use of new animal husbandry technologies and management of livestock grazing are some of the proposed solutions to improve the milk supply in the country.

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