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Economic Analysis of the Impact of Changes in the EC's Milk Quota, An

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Worried by rapidly increasing milk and beef policy costs, but constrained by political considerations, the European Community (EC) Council of Agriculture ministers introduced a milk quota regime effective April 1984. The extent to which a quota regime reduces economic efficiency and influences world trade depends upon how it is implemented. The method of implementation is also a major determinant of the policy's effect on world trade. Regulations favorable to production in grass-based dairy regions will, other things being equal, reduce world cereal demand. Regulations favorable to butterfat production may distort world, animal, and vegetable fat markets.

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  • David A. Hennessy & Dermot J. Hayes, 1994. "Economic Analysis of the Impact of Changes in the EC's Milk Quota, An," Center for Agricultural and Rural Development (CARD) Publications 94-gatt3, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:94-gatt3
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