SEASONALITY OF CLASS I PRICE DIFFERENTIAL ESTIMATES FOR THE SOUTHEASTERN UNITED STATES

This study provides insight into the seasonality of Class I price differentials in the southeastern dairy industry. This is accomplished by analyzing monthly estimates of Class I price differentials obtained from the imputed price solution or dual solution of a generalized capacitated minimum cost network flow model of the dairy industry. A smooth seasonal pattern emerges through the monthly sequence with the lowest and highest estimated Class I price differentials occurring in April and September respectively. Miami and Jacksonville areas reach $5.40 and $4.36 per hundredweight in April and $6.79 and $5.53 per hundredweight in September.