Impact Of Phasing Out Milk Quotas On Structure And Production Of Finnish Dairy Sector
We evaluate impacts of milk quota abolition in Finland where production costs and producer price of milk are among the highest in the EU. We analyse several price scenarios for dairy products corresponding to 10-30% reductions in raw milk prices in the EU following milk quota expansion of 2% per year. The sector model includes 18 dairy products and regions and other agricultural activities. Armington -assumption is used in modelling foreign trade. Trade of milk quotas and structural change are endogenous in the model. The results suggest that 10-15% reductions in the EU milk prices would result in less than 10% decrease in Finnish dairy production. Investments to large farm units would still increase. However, if the EU milk prices decreased by 15-20% production would fall by 10-22%. Overall it seems that milk quota abolition is not likely to result in any drastic downscaling of dairy sectors in Finland.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zohra Bouamra-Mechemache & Jean-Paul Chavas & Tom Cox & Vincent Réquillart, 2002. "EU Dairy Policy Reform and Future WTO Negotiations: a Spatial Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 233-257.
- Bouamra-Mechemache, Zohra & Jongeneel, Roel & Réquillart, Vincent, 2007. "The Dairy Industry in an Expending European Union: Policies and Strategies," IDEI Working Papers 478, Institut d'Économie Industrielle (IDEI), Toulouse.
- Z Bouamra Mechemache & V Réquillart, 2000. "Analysis of EU dairy policy reform," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(4), pages 409-430, December.
When requesting a correction, please mention this item's handle: RePEc:ags:eaa107:6465. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.