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The Deregulation and Rationalization of Australia's Dairy Industry-Implications for the U.S. and World Dairy Industries

Author

Listed:
  • Dobson, William D.
  • Wagner, Jeffrey

Abstract

The termination of Australia's Domestic Market Support scheme for manufacturing milk producers and the end of state market milk (fluid milk) pricing regulations on June 30, 2000 made Australia's dairy industry arguably the most deregulated in the world. Australia's milk production will become concentrated on larger farms in low-cost milk production areas as a result of deregulation. Deregulation is expected to enhance Australia's competitiveness in dairy export markets. Valuable lessons for the dairy industries of the U.S., EU, and other countries can be gained from analyzing the forces that caused Australia's dairy industry to deregulate. Of interest too is the restructuring package that Australia's dairy industry and Australia's government used to help milk producers adjust to the lower milk prices and lower farm asset values that accompany deregulation.

Suggested Citation

  • Dobson, William D. & Wagner, Jeffrey, 2000. "The Deregulation and Rationalization of Australia's Dairy Industry-Implications for the U.S. and World Dairy Industries," Discussion Papers 37661, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
    • Handle: RePEc:ags:uwmbdp:37661
    DOI: 10.22004/ag.econ.37661
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    Cited by:

    1. Dobson, William D. & Wagner, Jeffrey & Hintz, Rodney, 2001. "When Will U.S. Firms Become Major Dairy Exporters and Bigger Direct Investors in Foreign Dairy-Food Businesses?," Discussion Papers 37658, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.

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