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Efficiency Aspects of Transferable Dairy Quotas in New South Wales: A Linear Programming Approach

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  • Tozer, Peter R.

Abstract

In July 1990 the New South Wales Dairy Corporation altered the regulations governing the transferability of market milk supply quotas. These changes allow producers to trade in milk quotas to suit their individual production patterns. In this study, a farm-level analysis of the effects of changes in dairy quota policy in New South Wales was undertaken. In addition, an indication of the effectiveness of these changes, with respect to the original objectives of the policy makers, is provided. This research was based on a linear programming model designed to select the optimal farm plan, including quota transactions and milk production patterns. It was found that a farm could produce more milk for less cost, under a transferable quota scheme, than under the previous fixed quota scheme. This would indicate that transferable quotas can increase the efficiency of dairy production in New South Wales.

Suggested Citation

  • Tozer, Peter R., 1993. "Efficiency Aspects of Transferable Dairy Quotas in New South Wales: A Linear Programming Approach," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(02-1), pages 1-15, August.
    • Handle: RePEc:ags:remaae:9599
    DOI: 10.22004/ag.econ.9599
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    File URL: https://ageconsearch.umn.edu/record/9599/files/61020141.pdf
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    References listed on IDEAS

    as
    1. Ross M. Parish, 1963. "On Marketing Quotas For Fluid Milk," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 7(1), pages 61-68, June.
    2. Parish, Ross M., 1963. "On Marketing Quotas For Fluid Milk," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 7(1), pages 1-8, June.
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    Cited by:

    1. Tozer, Peter R. & Huffaker, Ray G., 1999. "Dairy Deregulation And Low-Input Dairy Production: A Bioeconomic Evaluation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.

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    1. Tozer, Peter R., 1992. "Efficiency Aspects of Transferable Dairy Quotas in NSW: A Linear Programming Approach," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 147333, Australian Agricultural and Resource Economics Society.
    2. MacKay, D.R. & Toft, H.I., 1978. "An Application of Spatial Equilibrium Analysis to the Transport and Processing of Wholemilk in N.S.W," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 46(01), pages 1-18, April.
    3. Alston, Julian M., 1981. "A Note on the Effects of Non-Transferable Quotas on Supply Functions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 49(03), pages 1-9, December.

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    Keywords

    Livestock Production/Industries;

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