StudentShare
Search
Free

# The Litre of Milk Index - Assignment Example

Summary
In our case, milk as a basic commodity is used to establish the currency relations against the US dollar. The idea is that depending upon the milk cost at local levels currencies…

## Extract of sample "The Litre of Milk Index"

The Liter of Milk Index Data Analysis The average retail price of a liter of milk in the US is liter 2. The exchange rate of local currencies of Denmark, Brazil and New Zealand are as per the following.
One Danish kroner = 0.190975 U.S. dollars
One Brazil Real = 0.638978 U.S. dollars
One New Zealand dollar = 0.8358 U.S. dollars (Full Universal Currency Converter)
3. The average salaries in these three countries are:
Denmark- The average salary in Denmark is DKK 223,000 per year. (Danish 2011)
Brazil- The average Brazilian salary per year is R\$60,000. (Salary Survey for Country: Brazil 2011)
New Zealand- The average salary in New Zealand per year is \$50,000 (Average salary survey 2011)
The average retail prices of milk in these countries are as per the following.
Denmark: It costs DKK 7.86 per liter of milk. (Food Prices)
Brazil: It costs R\$ 0.74 per liter of milk. (Brazil: Farm-gate milk prices)
New Zealand: It costs NZ\$ 2.2 per liter of milk. (Dramatic fall in Milk Sales)
4. Converting above price in US dollars.
Denmark: The cost of milk in US\$ is 1.5 per liter.
Brazil: The cost of milk in US\$ is 0.47 per liter.
New Zealand: The cost of milk in US\$ is 1.83 per liter.
The Big Mac Index philosophy focuses conversion of currencies based on purchasing power parity. In our case, milk as a basic commodity is used to establish the currency relations against the US dollar. The idea is that depending upon the milk cost at local levels currencies should adjust in their valuation with each other.
Tabulating milk index for the countries in our study:
Country
Currency
Milk Cost per Liter in local currencies
(Milk Index)
Currency valuation based on PPP of Milk Price, Based on 1 US dollar
Actual Exchange traded valuation for 1 US dollar
US
American Dollars
1.00
1.00
1.000
Denmark
DKK
7.86
7.86
5.230
Brazil
R\$
0.74
0.74
1.565
New Zealand
NZ dollars
2.20
2.20
1.196
Source: http://www.xe.com/ucc/full/
Conclusion
It is clear from the table that the actual exchange traded currency valuation are different from the one found through the milk index. Purchasing power parity angle bring exchange of currencies at the different level. This philosophy can be extended with many other commodities to form a basket to decide about purchasing power parity of the currencies.
From above, it is clear that the currency of Denmark is overvalued as exchange rate should be 7.86 but in actuality it is 5.23. Similarly, the currency of Brazil is undervalued as it should be 0.74 against 1 US dollar but it is traded in exchange at 1.565. In the same way it can be said that the currency of New Zealand is also over valued against 1 US dollar.
References
2. Brazil: Farm-gate milk prices, Retrieved July 10, 2011 from http://www.clal.it/en/index.php?section=latte_brasile
3. Fox, Andrea (2011), Dramatic Fall in Milk Sales, Retrieved July 10, 2011 from http://www.stuff.co.nz/business/farming/4552625/Dramatic-fall-in-milk-sales
4. Statistics New Zealand, Retrieved July 10, 2011 from http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/tracking-milk-prices-in-the-cpi.aspx
5. Danish 2011, Retrieved July 10, 2011 from http://www.skat.dk/SKAT.aspx?oId=1880484
6. Average salary survey (2011) Retrieved July 10, 2011 from http://www.averagesalarysurvey.com/article/average-salary-in-new-zealand/07163011/income.aspx
7. Salary Survey for Country: Brazil (2011), Retrieved July 10, 2011 from http://www.payscale.com/research/BR/Country=Brazil/Salary
8. Full Universal Currency Converter, Retrieved July 10, 2011 from http://www.xe.com/ucc/full/ Read More
Tags
Cite this document
• APA
• MLA
• CHICAGO
(“The Litre of Milk Index Assignment Example | Topics and Well Written Essays - 500 words”, n.d.)
The Litre of Milk Index Assignment Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/macro-microeconomics/1578112-the-litre-of-milk-index
(The Litre of Milk Index Assignment Example | Topics and Well Written Essays - 500 Words)
The Litre of Milk Index Assignment Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/macro-microeconomics/1578112-the-litre-of-milk-index.
“The Litre of Milk Index Assignment Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1578112-the-litre-of-milk-index.
Click to create a comment or rate a document

## CHECK THESE SAMPLES OF The Litre of Milk Index

### Persuasive Speech on Milk

... information Specific purpose: My speech will cause the listeners to reconsider the commonly accepted wisdom of the health benefits of milk, and reconsider drinking it as part of a healthy diet. Attention gainer: Hindsight in the medical field leaves many of us laughing today—an example of this is how some cigarettes in the 1950s were advertised as number one doctor recommended. What doctor would ever recommend a cigarette brand today? Probably not a single one. Many doctors, however, would recommend milk. However, that may be about to change—milk, according to many experts, is not at all as healthy as claimed. Seventy-five percent of the world can't digest it, and the countries with the lowest rate of dairy consumption also avoid...
3 Pages (750 words) Speech or Presentation

### Meat and milk factories

...?Week 6 Assignment “Meat and Milk Factories” by Peter Singer and Jim Mason Critiqued by: Willie Davis ENG-140IBC15 Meat and Milk Production: How Nomenclature Affects How We Treat Animals In the book The Way We Eat: Why Our Food Choice Matter, there is a chapter devoted to meat and milk farms. In this chapter, the authors, Singer and Mason, are trying to show how our milk and meat farms operate and how we treat our animals. In the process, they raised the question about why it would be that we have different nomenclature for animal acts. Instead of giving birth, they “farrow.” Instead of eating, they “feed.” Instead of being pregnant, they “gestate.” The implication is that we use different terms for animals, so that we can continue...
4 Pages (1000 words) Essay

### Barthel Index

...? Barthel Index Barthel Index (BI) is an ordinal scale for functional assessment of disability that has been widely used with the patients who suffer from neuromuscular and musculoskeletal conditions ( Sainsbury, SeeBass, Bansal, Young, 2005). The index has been widely applied since 1955 by nurses and rehabilitation therapist to examine patients prior to admission and following discharge (Mahoney, Barthel 1965). There are two types of the Barthel index: the original Barthel index scored in steps of five points to give a maximum total of 100 scores and the modified index that includes a revised, score range of 0-20. For each Item listed in the index there are assigned values based on time and the amount of the actual physical assistances...
4 Pages (1000 words) Essay

### Milk

...INTRODUCTION Milk has been used since time immemorial, across all cultures, as an integral part of the food pyramid. It has been used right from theraw fluid form to various forms of processed milk like butter, cream and milk desserts, milk powder, cheese etc. Milk is a nutritious medium, right from meeting complete food requirements of an infant in the form of colostrum, to normal milk which is a rich source of sugars esp. lactose, fat and proteins. Milk is a highly perishable commodity and one of the critical factors determining the keeping quality of milk is its microbiological status. In a healthy animal, milk is sterile in the udder, however microbiological contamination may happen depending on the milking methods and the hygiene...
15 Pages (3750 words) Essay

### Milk Pasteurization Unit

... capita milk consumption of 200 kg per capita in 2004. Therefore, we believe that setting up a milk-pasteurization unit would be a viable and profitable option, as the consumption of milk is enormous in the Pakistani market, and all the customers in the milk market want to consume high quality and hygienic milk at reasonable prices. Proposition of establishment: The project would be a small scale milk pasteurization unit with facilities for plastic pouch packaging. Our intended dairy unit would constitute a 3000 litres milk intake capacity per hour which is a distinctly economical size for setting up a milk processing business. However, due to the time required for installation and running of the unit, it is expected that the plant would...
18 Pages (4500 words) Research Proposal

...Advertising Analysis Essay The ad caption is got milk? and it is brought into publication by Dairy Farmers. It was brought under print in May 2001 inVanity Fair. Available at: http://www.adflip.com/addetails.php?adID=13621&showLargeJpg=yes Step 1: 1. Pick any one advertisement and analyze its subtextual content A young and sexy female is shown on this ad which suggests that the sexual explicit is very significant towards the message which has been brought forward by the client. It is usually a myth that young women do not like to drink milk as it is not an ‘in’ thing yet this lady (within the ad) dispels the impression in an outright manner and shows that it is very much the ‘in’ thing and ladies can drink milk and stay fit...
3 Pages (750 words) Essay

### Got milk

...Got Milk? GOT MILK? Question A lot of products are likely to be affected by a problem in the U.S. milk supply chain. The products include cheese, yogurt, cream, milk protein, ghee, buttermilk, milk powder, infant formula, whey protein and milk protein concentrates. An ice scream business, which happens to use contaminated milk to manufacture ice scream, is bound to lose its operating license and market share. The ice scream will pose health risks and consumers will avoid purchasing the product after finding out that it was manufactured with contaminated milk. The ice scream business will suffer huge loses since they will not make any sales, and at the same time they will be forced dispose of the products. The business will also lose its...
2 Pages (500 words) Case Study

### Got milk

...Got Milk? Its Good for You – Unless Its Contaminated List 10 products that could possibly be affected by a problem in the U.S. milk supply chain. What would be the damages to an ice cream business that used contaminated milk in its manufacturing process? Who do you think should be held liable for such as issue? 10 products that could be affected by a problem in the U.S. milk supply chain are (1) milk; (2) cheese; (3) yoghurt; (4) butter; (5) cottage cheese; (6) cereals; (7) bread; (8) crackers; (9) buttermilk; and (10) curd. If an ice cream business used contaminated milk in its manufacturing process, then potentially the company could be sued for not making sure that its ingredients were safe to use before production. It does not matter...
2 Pages (500 words) Case Study

### Camel Milk

...﻿Camel Milk Camel milk is not the most popular source of nourishment globally, but it is widely used in the Middle East and in parts of North Africa. Due to its increase in popularity in recent years, a few studies have been conducted in order to investigate the health properties that camel milk possesses. According to a study conducted in 2010 by the University of UAE, it was discovered that camel milk has three times the amount of vitamin C that cow milk has. The camel milk also possesses anti-carcinogenic properties, especially relating to colon cancer. Additionally, the camel milk is used as a counter agent to hyper tension. In its laban form, the milk acts as an inhibitor to the ACE enzyme, which has been identified as the trigger...
1 Pages (250 words) Essay

### Seeds milk rather than cow's milk

...Literature Review: Seeds milk rather than cows milk Contents Contents Disadvantages of cow milk 4 Food sensitivities to dairy and gluten 5 Initiated diseases 5 Sensitivity to Gluten 6 Seeds as an alternative 7 Benefits of seeds 7 Benefits of nuts 7 Seeds of Brassicacea 8 Cause of the rise of diary related symptoms 8 Reasons behind milk being bad for health 8 Report of United Nations regarding the issue 9 Mortality rates associated with the milk of cow 10 Mortality rates associated with drinking milk 10 Proposed advantages of drinking milk 10 Undesirable effect of drinking milk 10 Switch from Cow’s milk to milk from nuts for 40 years or older 11 Disadvantage of cow’s milk 11 Benefits of seeds milk 12 Conclusion 12 References 14...
12 Pages (3000 words) Literature review

### Microbiology of Milk

...INTRODUCTION Milk has been used since time immemorial, across all cultures, as an integral part of the food pyramid. It has been used right from the raw fluid form to various forms of processed milk like butter, cream and milk desserts, milk powder, cheese etc. Milk is a nutritious medium, right from meeting complete food requirements of an infant in the form of colostrum, to normal milk which is a rich source of sugars esp. lactose, fat and proteins. Milk is a highly perishable commodity and one of the critical factors determining the keeping quality of milk is its microbiological status. In a healthy animal, milk is sterile in the udder, however microbiological contamination may happen depending on the milking methods and the hygiene...
14 Pages (3500 words) Research Proposal

### The Effect of Carbohydrate on Fatigue, and the Effect of High and Low Glycemic Index of Food

For each trail, a rest period of 25 min was maintained to get rid of the earlier test effect of fatigue. The experiment was conducted with each diet per day, noting the time levels for each shuttle run of subjects with the help of a stopwatch. The fatigue indices were calculated and rated on a 5 unit scale for easy comparison at minimum values. The test results were was coded on to the computer to do a variance analysis. A Two-way analysis with repetitive data was conducted and found the P<0.05 indicating that the diet has a significant effect on the endurance levels of the runners. The study found that food with High Carbohydrates with Low Glycemic Index levels shows higher fatigue levels in shuttle runners than other levels o...
40 Pages (10000 words) Term Paper

### Role of Index of Plasticity in Structural Design

.... The plasticity index of a soil: Before getting into a detail of how plasticity index of a soil can influence the design of foundation to be constructed over it, it is customary to give a brief description of the term. Plasticity index is the difference between the percentage of moisture content in the liquid limit of a soil and that in its plastic limit, since soil at both Atterberg limits always contains a moisture content. Plasticity index of a soil is essentially a measure of the range of values over which it would maintain its plastic characteristics. Clay starts to exhibit its plasticity when water is added to its dry solid sample. When that happens, the percentage of moisture the sample contains is referred to as its plastic limit...
7 Pages (1750 words) Research Paper

### Human Development Index and Gross Domestic Product

The most recognized growth indicators of a nation have been GDP. Since HDI is a composite statistic gathered from data on life expectancy, education and GDP per capita, which are measured in three separate units, it faces serious criticisms. This project is meant to highlight the criticisms faced by HDI being used as an indicator of economic development against GDP, which has been so far the most widely used indicator of economic development. But it also takes the other aspects like, life expectancy at birth, literacy rates and living standards which are not considered by the growth index.

“Human Development Index is a summary measure of human development. It measures the average achievements in a country in three...
7 Pages (1750 words) Coursework

### Food Safety Measures for Milk

...﻿Food Safety Measures for Milk A critical review of Implication of food safety measures on microbiological quality of raw and pasteurized milk Student Name 1. Introduction This essay is a critical review of the paper Implication of food safety measures on microbiological quality of raw and pasteurized milk, by Nada et al. (2012). The authors’ paper is an experimental research study that examines the effect of a system of quality improvement on the quality of raw and pasteurized milk in one of the largest dairy plants present in Serbia. The aim of this critical review is to consider the authors’ paper in detail, with respect to other papers in this field, in addition to experimental design and outcomes. It is argued that although...
12 Pages (3000 words) Assignment

### The Use of Body-Mass Index as A Measurement of Body Fat

...﻿THE USE OF BODY-MASS INDEX AS A MEASUREMENT OF BODY FAT ABSTRACT The use of body mass index as a method for the measurement and evaluation of body fat is evaluated. Using meta-analysis of the available literature and programs employed to initiate such efforts, the uses and limitations of the technique are described. Alternatives to body mass index are evaluated, described, based upon their comparative utility. A conclusion is supported that different methods of body fat measurement are efficient for various purposes, however for the purposes of large scale screening of a population for likelihood of obesity, body mass index is an efficient means by which obesity can be determined in the interest of health and fitness. INTRODUCTION...
15 Pages (3750 words) Article

### Effects of Fast Food on Body Mass Index Level in Adolescents and Students

..., and a greater likelihood of being obese. Previous researchers have identified a correlation between fast foods and increasing body mass index. This research study will seek to determine the association between teenager BMI, and fast food consumption. Data obtained from this research will serve to determine the correlation between a high BMI and a high rate of fast food consumption. If children and students who reveal that they are frequent consumers of fast foods present a high MBI, then it will be evident that a positive correlation between the two factors exists. 6.0 Method The design for this research will be a cross-sectional study that will focus on measuring the BMI of adolescents from different regions after analysing their intake...
8 Pages (2000 words) Research Paper

### Low Glycaemic Index Diets

Research done by Gries (2003) shows that the glycemic index diet is an eating plan that is majorly based on how foods people eat affect blood sugar levels. It can also be defined as a system in which the carbohydrate foods are assigned a number according to how they increase the blood sugar level. It is also not a diet plan, but a tool among other tools such as calorie counting. It uses indices as the primary key in planning meals. Additionally, it does not specify the portions of fats, calories or carbohydrates for weight loss or maintenance (Gries, 2003).

Consequently, Sievenpiper et al, (2012) provided a detailed study, which proved that the glycemic index offers information on how foods affect insulin and blood sug...
8 Pages (2000 words) Literature review

### The Story about The Milk Factory

...﻿Act 1 Once upon a time, there was an old man, whose empire of milk drinks was going down. His company was called The Milk Factory. The main product’s brand name was Fresh Milk. The old man, as you could see, was not very creative with names. The old man’s milk business was once thriving, but recently failing. The growing health trend against cow’s milk and the old man’s resistance to adding vegetable-based milk to the company’s product portfolio were killing the company’s bottom-line. The old man also had problems expanding to new states and adding more kinds of products. He was the father of conservative, local thinking. The old man himself once milked his cows. He sold fresh, raw milk in bottles to the local grocery store. He once...
14 Pages (3500 words) Essay

### Human Development Index in Statistics

...-dignity and cultural liberty (Anon., 2008). Human capital plays a vital role in development of a country this is brought about by making meaningful investment in improving health of its citizens, thus increasing well-being of citizen’s increases the life expectancy. Increase in knowledge of its citizens empowers the citizens earns a decent living and this variable is measured by the adult literacy rates, basic education (both primary and secondary) and tertiary level of enrolment. GDP is often used to evaluate the nation state, HDI was first developed in 1990 to help to understand the simple matrix of basic human well-being. The composite index is widely used world-wide by government statistics its release and publication generates a lot...
6 Pages (1500 words) Coursework