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Regional Distribution of Short-Run, Medium-Run and Long-Run Quota Rents Across EU-15 Milk Producers


  • Moro, Daniele
  • Nardella, Michele
  • Sckokai, Paolo


This paper evaluates the distribution of short- and long-run marginal costs and quota rents across the EU-15 milk producers, by estimating a system of cost and input share equations on a panel data of dairy farms from 1996 to 2001. Regional and geographical location and the size of milk operations have been considered as the major factors affecting marginal costs. The results on quota rents highlights that Italian and Greek dairy farmers receive the highest economic rent (260 €/ton), while in Portugal the lowest (101 €/Kg) at least in the short-run. This is an indication that Italian and Greek milk supply would be the least 'sensitive' to a reduction in the intervention price. Several countries show negative long-run quota rents, indicating that in the long-run current market prices influence dairy farm's production plans.

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  • Moro, Daniele & Nardella, Michele & Sckokai, Paolo, 2005. "Regional Distribution of Short-Run, Medium-Run and Long-Run Quota Rents Across EU-15 Milk Producers," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24615, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24615

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    References listed on IDEAS

    1. Cook, A. J. & Kerr, G. N. & Moore, K., 2002. "Attitudes and intentions towards purchasing GM food," Journal of Economic Psychology, Elsevier, vol. 23(5), pages 557-572, October.
    2. House, Lisa & Lusk, Jayson L. & Jaeger, Sara & Traill, W. Bruce & Moore, Melissa & Valli, Carlotta & Morrow, Bert & Yee, Wallace M.S., 2004. "Objective And Subjective Knowledge: Impacts On Consumer Demand For Genetically Modified Foods In The United States And The European Union," 2004 Annual meeting, August 1-4, Denver, CO 20125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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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. Lelyon, Baptiste & Chatellier, Vincent & Daniel, Karine, 2008. "Milk Quotas Abolishment And Simplification Of The Single Payment Scheme: Implications On Dairy Farmers’ Productive Strategy In The West Of France," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44795, European Association of Agricultural Economists.
    3. Bouamra-Mechemache, Zohra & Jogeneel, Roel & Requillart, Vincent, 2008. "Removing EU milk quotas, soft landing versus hard landing," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43656, European Association of Agricultural Economists.
    4. Rajsic, Predrag, 2013. "Cost Structure of the Ontario Dairy Industry Revisited: Distributional Aspects," Working Papers 157407, Canadian Agricultural Trade Policy Research Network.
    5. Mariusz Hamulczuk & Katarzyna Hertel, 2009. "Implications of the Abolition of Milk Quota System for Polish Agriculture – Simulation Results Based on the AG MEMOD Model," Contemporary Economics, University of Finance and Management in Warsaw, vol. 3(3), September.
    6. Lelyon, Baptiste & Daniel, Karine & Chatellier, Vincent, 2008. "Decoupling and prices: determinant of dairy farmers’ choices? A model to analyse impacts of the 2003 CAP reform," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44250, European Association of Agricultural Economists.
    7. 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.
    8. Bouamra-Mechemache, Zohra & Réquillart, Vincent & Soregaroli, Claudio & Trévisiol, Audrey, 2008. "Demand for dairy products in the EU," Food Policy, Elsevier, vol. 33(6), pages 644-656, December.
    9. Bouamra-Mechemache, Z. & Hadj-Ali Kein, H. & Jongeneel, R. & Tonini, A. Réquillart, V., 2005. "EU Dairy sector : impact of Luxemburg reform, EU enlargement and trade negotiations," Economics Working Paper Archive (Toulouse) 200520, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse).
    10. Casasnovas, Valero L. & Aldanondo, Ana Maria, 2011. "Influence of Animal Feeding on Milk Supply in Navarre," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114316, European Association of Agricultural Economists.

    More about this item


    dairy; quota rents; marginal costs; Livestock Production/Industries; C21; Q13; Q18;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


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