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Analysing trade-offs between milk, feed and manure production on Dutch dairy farms

Author

Listed:
  • Gerlinda S. Samson
  • Cornelis Gardebroek
  • Roel A. Jongeneel

Abstract

The abolition of milk quota fuels environmental concerns in the Netherlands. A microeconomic model is developed to analyse the technical relations between milk, roughage and manure production. Production functions for milk, feed and roughage are estimated based on milk quota and manure constraints. Together with an equation for manure production these are used to calculate the costs and benefits of dairy livestock expansion. It turns out that at the margin and at prevailing input and output prices and manure processing costs, it will be attractive for dairy farms to expand production, unless regulatory constraints prevent them from doing so.

Suggested Citation

  • Gerlinda S. Samson & Cornelis Gardebroek & Roel A. Jongeneel, 2017. "Analysing trade-offs between milk, feed and manure production on Dutch dairy farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(3), pages 475-498.
    • Handle: RePEc:oup:erevae:v:44:y:2017:i:3:p:475-498.
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    File URL: http://hdl.handle.net/10.1093/erae/jbw025
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    Citations

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    Cited by:

    1. Montserrat Costa†Font & Cesar Revoredo†Giha, 2018. "An empirical analysis of U.K. milk contract prices 2004–2016," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 112-141, December.
    2. Letort, Elodie & Dupraz, P, 2023. "Animal feed as a lever to reduce methane emissions: a micro-econometric approach applied to French dairy farms," Working Papers 338908, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Roel Jongeneel & Ana Gonzalez-Martinez, 2022. "EU Dairy after the Quota Abolition: Inelastic Asymmetric Price Responsiveness and Adverse Milk Supply during Crisis Time," Agriculture, MDPI, vol. 12(12), pages 1-16, November.
    4. Jongeneel, Roel & Gonzalez-Martinez, Ana Rosa, 2022. "The role of market drivers in explaining the EU milk supply after the milk quota abolition," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 194-209.

    More about this item

    Keywords

    manure surplus; dairy; milk quota abolition; panel data; the Netherlands;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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