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