IDEAS home Printed from https://ideas.repec.org/a/bla/canjag/v47y1999i5p115-116.html
   My bibliography  Save this article

Policy Reform in the European Union Dairy Sector: Effects on Markets and Welfare: Discussion

Author

Listed:
  • Giancarlo Moschini

Abstract

This paper analyzes the impacts of policy reforms in the EU dairy sector. It is shown that the imple-mentation of GATT agreements leads to a 4% decrease in the milk price. Prices of SMP and WMP decrease more than butter and cheese prices. EU welfare increases marginally, but distributive effects are large. The increase in quotas decided by the Berlin Agreement will cause a dramatic cut in the milk price (−10% to −15% depending on how EU demand will increase in the future). Moreover, because of the constraints on subsidized exports, the implicit price of protein will decrease much more than the price of fat. Finally, if demand expands sufficiently, then compensatory payments (including national envelopes) will cover about 90% of the loss in producer surplus due to the milk price cut. We also inves-tigate the impact of a two-tiered quota system and show that its impacts are similar to those generated by the implementation of GATT agreements.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Giancarlo Moschini, 1999. "Policy Reform in the European Union Dairy Sector: Effects on Markets and Welfare: Discussion," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 115-116, December.
    • Handle: RePEc:bla:canjag:v:47:y:1999:i:5:p:115-116
    DOI: j.1744-7976.1999.tb00248.x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1744-7976.1999.tb00248.x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/j.1744-7976.1999.tb00248.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:canjag:v:47:y:1999:i:5:p:115-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/caefmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.