Abstract
The US government implemented or sanctioned measures that substantially deregulated the US dairy industry during the 1980s and early 1990s. Leading US cooperatives have read government signals as forecasts of additional reductions in real support for the US dairy industry. Accordingly, they made product development, exporting, and other strategic adjustments to operate more effectively in the new environment. Two scenarios describing future developments in the US dairy industry were analyzed: Scenario No. 1 involves additional gradual liberalization of the industry. Scenario No. 2 involves changes that occur as a by-product of the North American Free Trade Agreement. Developments under this scenario enable US firms to expand their shares of the Canadian and Mexican dairy markets. © 1992 John Wiley & Sons, Inc.
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