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Impact of a gradual increase in milk quotas on the EU dairy sector

Author

Listed:
  • Zohra Bouamra-Mechemache
  • Roel Jongeneel
  • Vincent Réquillart

Abstract

The European Union (EU) dairy sector is facing significant changes due to EU enlargement, the Luxembourg reform and ongoing World Trade Organisation (WTO) negotiations. This paper explores the impact of alternative dairy policies in the context of a WTO agreement and further dairy policy adjustments. In particular, it analyses the impact of gradual but significant increases in EU milk quota and discusses the implications of different changes in the allocation of milk quotas. These scenarios are compared with the status quo as decided in the Common Agricultural Policy reform of 2003. We find that, by 2014--2015, the market effects of abolishing quota are similar to those of a 2 per cent gradual quota increase starting in 2009. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Zohra Bouamra-Mechemache & Roel Jongeneel & Vincent Réquillart, 2008. "Impact of a gradual increase in milk quotas on the EU dairy sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 461-491, December.
  • Handle: RePEc:oup:erevae:v:35:y:2008:i:4:p:461-491
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    File URL: http://hdl.handle.net/10.1093/erae/jbn044
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    Cited by:

    1. Baptiste Lelyon & Vincent Chatellier & Karine Daniel, 2011. "Decoupling and prices: determinant of dairy farmers’ choices?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(1), pages 47-68.
    2. repec:eee:agisys:v:153:y:2017:i:c:p:1-10 is not listed on IDEAS
    3. Moro, Daniele & Sckokai, Paolo, 2011. "The impact of pillar I support on farm choices: conceptual and methodological challenges," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99836, European Association of Agricultural Economists.
    4. Bakucs, Zoltan & Ferto, Imre & Benedeka, Zsofia & Molnar, Adrienn, 2015. "Determinants of Horizontal Milk Producer Price Integration," 2015 Conference, August 9-14, 2015, Milan, Italy 212042, International Association of Agricultural Economists.
    5. repec:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0085-x is not listed on IDEAS
    6. Bonnet, Céline & Corre, Tifenn & Réquillart, Vincent, 2015. "Price Transmission in Food Chains: The Case of the Dairy Industry," TSE Working Papers 15-563, Toulouse School of Economics (TSE).
    7. Krol, Noortje & Polman, Nico & Peerlings, Jack & Nikolov, Dimitre, 2010. "Changing governance in the EU milk supply chain," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52703, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    8. Peerlings, Jack H.M. & Polman, Nico B.P. & Krol, Noortje, 2010. "Structural change in the EU dairy sector," 114th Seminar, April 15-16, 2010, Berlin, Germany 61088, European Association of Agricultural Economists.
    9. Huib Silvis & Roel Jongeneel, 2011. "The Reforms of the Common Agricultural Policy," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 10 Edward Elgar Publishing.
    10. Charlebois, Sylvain, 2016. "Policy-change Triggered Environmental Uncertainty in a Dairy Cooperative: The Case of Mila in South Tyrol," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 7(3).
    11. Soregaroli, Claudio & Sckokai, Paolo & Moro, Daniele, 2011. "Agricultural policy modelling under imperfect competition," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 195-212, March.
    12. Dervillé, Marie & Allaire, Gilles, 2014. "Change of competition regime and regional innovative capacities: Evidence from dairy restructuring in France," Food Policy, Elsevier, vol. 49(P1), pages 347-360.
    13. Binfield, Julian C.R. & Donnellan, Trevor & Hanrahan, Kevin F. & Westhoff, Patrick C., 2009. "WTO Doha Round: Impact of an Agreement on Agriculture and the Importance of Sensitive Products," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50936, Agricultural Economics Society.
    14. Kempen, Markus & Witzke, Peter & Pérez Domínguez, Ignacio & Jansson, Torbjörn & Sckokai, Paolo, 2011. "Economic and environmental impacts of milk quota reform in Europe," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 29-52, January.
    15. Massimiliano Calì & Stephan Nolte & Nicola Cantore, 2013. "Sweet and Sour Changes in Trade Regimes," The World Economy, Wiley Blackwell, vol. 36(6), pages 786-806, June.
    16. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
    17. repec:gam:jeners:v:11:y:2018:i:2:p:451-:d:132511 is not listed on IDEAS
    18. Paris, Quirino & Drogué, Sophie & Anania, Giovanni, 2011. "Calibrating spatial models of trade," Economic Modelling, Elsevier, vol. 28(6), pages 2509-2516.
    19. Klaus Salhofer & Christoph Tribl & Franz Sinabell, 2012. "Market power in Austrian food retailing: the case of milk products," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 109-122, February.
    20. Kazukauskas, Andrius & Newman, Carol F. & Thorne, Fiona S., 2010. "Analysing the Effect of Decoupling on Agricultural Production: Evidence from Irish Dairy Farms using the Olley and Pakes Approach," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).
    21. O’Brien, Donal & Shalloo, Laurence & Patton, Joe & Buckley, Frank & Grainger, Chris & Wallace, Michael, 2012. "A life cycle assessment of seasonal grass-based and confinement dairy farms," Agricultural Systems, Elsevier, vol. 107(C), pages 33-46.
    22. Zdenek, Radek & Lososova, Jana, 2014. "Factors Influencing The Labour Productivity In Dairy Sector In Eu," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage: http://www.roaae.org;Association of Agricultural Economists in Slovakia (APES), vol. 17(2).

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