Impact of the Berlin Accord and European Enlargement on Dairy Markets, The
This paper analyzes the effect on dairy markets of the Berlin Accord and the European Union (EU) Common Agricultural Policy (CAP) reforms. It also investigates the consequences of the EU enlargement to include three Central and Eastern European countries (CEECs), the Czech Republic, Hungary, and Poland, with sizeable agricultural and dairy markets. While the analyses are dependent on a series of assumptions relating to the functioning of EU markets and the future world agricultural and macroeconomic situations, the paper concludes that CAP reforms resulting from the Berlin Accord are likely to create substantial changes in the European agricultural markets. Policy changes in the dairy sector in addition to the accession of the three CEECs will lead to a permanent but moderate decrease in EU milk and dairy product prices.
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