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


  • Zohra Bouamra-Mechemache
  • Roel Jongeneel
  • Vincent Réquillart


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, Oxford University Press.

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  • 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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    5. 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.
    6. 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.
    7. 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.
    8. Paris, Quirino & Drogué, Sophie & Anania, Giovanni, 2011. "Calibrating spatial models of trade," Economic Modelling, Elsevier, vol. 28(6), pages 2509-2516.
    9. 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:;Association of Agricultural Economists in Slovakia (APES), vol. 17(2).
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    15. 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.
    16. 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).
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    18. 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).
    19. 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.
    20. 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.

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