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Evaluation of the impact of milk quota - case study Germany

Author

Listed:
  • Kleinhanß, Werner
  • Offermann, Frank
  • Ehrmann, Markus

Abstract

At the time of the introduction of the quota system the structure of dairy production in Germany was rather unfavourable. Since 1993, German policy generally aimed at improving quota mobility. The introduction of transfers without land in 1993 facilitated farm growth and the transfer of resources and production to the better farm managers and to locations best suited for dairy production; however the latter was restricted by the regional limitations of the trading zones. The quota auctions introduced in 2000 significantly improved the transparency of quota markets. Larger regional shifts in production will be enabled by the recent reduction of the number of trading zones. Overall, structural change in dairy production has been strong (halving the number of dairy farms every ten years) despite the limitations by the quota system. Still many regions in Germany, notably the case study region of Bavaria, are characterised by small farm structure, where the main share of milk production is still realised by small and medium sized farms.

Suggested Citation

  • Kleinhanß, Werner & Offermann, Frank & Ehrmann, Markus, 2010. "Evaluation of the impact of milk quota - case study Germany," Arbeitsberichte aus der vTI-Agrarökonomie 07/2010, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    • Handle: RePEc:zbw:vtiaba:072010
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    Citations

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    Cited by:

    1. Alpmann, Jan & Bitsch, Vera, 2017. "Dynamics of asymmetric conflict: The case of the German Milk Conflict," Food Policy, Elsevier, vol. 66(C), pages 62-72.
    2. Francksen, Tammo & Hagemann, Martin & Latacz-Lohmann, Uwe, 2011. "Eine empirische Untersuchung zum Wachstum von Milchviehbetrieben mittels der Ereignisanalyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114494, German Association of Agricultural Economists (GEWISOLA).
    3. Hagemann, M. & Francksen, T. & Latacz-Lohmann, U., 2012. "Determinants of internal farm growth in milk production: An investigation using event history analysis," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 47, March.
    4. Alpmann, Jan & Bitsch, Vera, 2013. "Institutional Change in Germany’s Farmers Associations:Impacts of the Dairy Conflict," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(2), pages 1-9, November.

    More about this item

    Keywords

    Milk quota; Agricultural policy; structural change; environmental impacts; Milchquote; Agrarpolitik; Strukturwandel; Umwelteffekte;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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