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deregulation on the Norwegian Market for Milk Products


  • Brunstad, R.J.
  • Gaasland, I.
  • Vardal, E.


In this paper we use a price endogenous mathematical programming model to estimate the national welfare losses induced by the Norwegian dairy policy. Firstly, we focus on welfare losses at the processing level due to price discrimination between different uses of the milk and cross-subsidisation of export. Secondly, we focus on inefficiency at the farm level due to small-scale farm units and a distribution of production that does not reflect regional comparative advantages. Thirdly, we demonstrate that employment in depressed areas can be upheld at far lower costs if the processing industry is deregulated and the rural farmers are supported through more direct payments.

Suggested Citation

  • Brunstad, R.J. & Gaasland, I. & Vardal, E., 1998. "deregulation on the Norwegian Market for Milk Products," Papers 15/98, Norwegian School of Economics and Business Administration-.
  • Handle: RePEc:fth:norgee:15/98

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    JEL classification:

    • 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
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy


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