IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v153y2017icp1-10.html
   My bibliography  Save this article

Could EU dairy quota removal favour some dairy production systems over others? The case of French dairy production systems

Author

Listed:
  • Salou, Thibault
  • van der Werf, Hayo M.G.
  • Levert, Fabrice
  • Forslund, Agneta
  • Hercule, Jonathan
  • Le Mouël, Chantal

Abstract

Since the 1st of April 2015, European dairy quotas, one of the iconic instruments of the Common Agricultural Policy, have been removed. With this removal, the European Commission expects to develop a more competitive and market-oriented dairy sector in light of increasing world food demand. In countries such as France, where quotas were administratively managed and strongly linked to land, this system maintained dairy production in all regions but also sustained inefficient dairy production systems. With quota removal, changes such as concentration of production in the most favourable areas, enlargement of dairy farms and restructuring of the dairy sector to increase the efficiency of production systems are likely. The impacts of quota removal on markets, as well as the localisation of dairy production, have been widely studied. The impacts on the distribution of dairy production across various production systems have been less studied. We use MATSIM-LUCA, a partial equilibrium economic model, to assess the impacts of dairy quota removal on i) markets and prices and ii) redistribution of production among dairy production systems in France. We consider several world demand scenarios for dairy and meat products to test the sensitivity of our results to future world demand for these products.

Suggested Citation

  • Salou, Thibault & van der Werf, Hayo M.G. & Levert, Fabrice & Forslund, Agneta & Hercule, Jonathan & Le Mouël, Chantal, 2017. "Could EU dairy quota removal favour some dairy production systems over others? The case of French dairy production systems," Agricultural Systems, Elsevier, vol. 153(C), pages 1-10.
    • Handle: RePEc:eee:agisys:v:153:y:2017:i:c:p:1-10
    DOI: 10.1016/j.agsy.2017.01.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X16303821
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agsy.2017.01.004?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Jongeneel, Roelof A. & Tonini, Axel, 2009. "The impact of quota rent and supply elasticity estimates for EU dairy policy evaluation: a comparative analysis," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(05-06), pages 1-10, July.
    2. Murat Isik, 2004. "Environmental Regulation and the Spatial Structure of the U.S. Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 949-962.
    3. repec:bla:eurcho:v:8:y:2009:i:specialissue:p:13-22 is not listed on IDEAS
    4. repec:bla:eurcho:v:8:y:2009:i:specialissue:p:23-29 is not listed on IDEAS
    5. Cathal O'Donoghue & Thia Hennessy, 2015. "Policy and Economic Change in the Agri-Food Sector in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 315-337.
    6. Colman, David, 2000. "Inefficiencies in the UK milk quota system," Food Policy, Elsevier, vol. 25(1), pages 1-16, February.
    7. Karine Daniel, 2003. "Concentration et spécialisation : quel schéma pour l'agriculture communautaire ?," Economie & Prévision, La Documentation Française, vol. 158(2), pages 105-120.
    8. Chantreuil, Frederic & Donnellan, Trevor & van Leeuwen, Myrna & Salamon, Petra & Tabeau, Andrzej A. & Bartova, Lubica, 2008. "EU Dairy Quota Reform – AGMEMOD Scenario Analysis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43655, European Association of Agricultural Economists.
    9. Kempen, Markus & Witzke, Peter & Pérez Domínguez, Ignacio & Jansson, Torbjörn & Sckokai, Paolo, 2011. "Economic and environmental impacts of milk quota reform in Europe," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 29-52, January.
    10. Witzke, Heinz Peter & Tonini, Axel, 2009. "Milk quota expiry impacts and sensitivity analyses using the CAPSIM model," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(05-06), pages 1-10, July.
    11. Lee, Huey-Lin & Hertel, Thomas & Rose, Steven & Avetisyan, Misak, 2008. "An Integrated Global Land Use Data Base for CGE Analysis of Climate Policy Options," GTAP Working Papers 2603, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    12. Bruno Henry de Frahan & Alexandre Baudry & Rembert De Blander & Philippe Polomé & Richard Howitt, 2011. "Dairy farms without quotas in Belgium: estimation and simulation with a flexible cost function," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(4), pages 469-495, October.
    13. Bouamra-Mechemache, Zohra & Réquillart, Vincent & Soregaroli, Claudio & Trévisiol, Audrey, 2008. "Demand for dairy products in the EU," Food Policy, Elsevier, vol. 33(6), pages 644-656, December.
    14. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
    15. Patton, Myles & Binfield, Julian C.R. & Moss, Joan E. & Kostov, Philip & Zhang, Lichun & Davis, John & Westhoff, Patrick C., 2008. "Impact of the abolition of EU Milk quotas on Agriculture in the UK," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6650, European Association of Agricultural Economists.
    16. Bouwman, A.F. & Van der Hoek, K.W. & Eickhout, B. & Soenario, I., 2005. "Exploring changes in world ruminant production systems," Agricultural Systems, Elsevier, vol. 84(2), pages 121-153, May.
    17. Baptiste Lelyon & Vincent Chatellier & Karine Daniel, 2012. "Production strategies after the end of milk quotas: an analysis based on bio-economic modeling [Fin des quotas laitiers, contractualisation et stratégies productives : enseignements d’une modélisat," Post-Print hal-02649264, HAL.
    18. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17, March.
    19. Zohra Bouamra-Mechemache & Roel Jongeneel & Vincent Réquillart, 2008. "Impact of a gradual increase in milk quotas on the EU dairy sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(4), pages 461-491, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lukáš Čechura & Zdeňka Žáková Kroupová & Irena Benešová, 2021. "Productivity and Efficiency in European Milk Production: Can We Observe the Effects of Abolishing Milk Quotas?," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    2. Montserrat Costa†Font & Cesar Revoredo†Giha, 2018. "An empirical analysis of U.K. milk contract prices 2004–2016," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 112-141, December.
    3. Gecaj, Merita & Shahu, Edmira Ozuni & Imami, Drini & Skreli, Engjell & Jambor, Attila, 2018. "Analysing the impact of subsidies in the Albanian agriculture sector – A comparative approach," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271964, European Association of Agricultural Economists.
    4. Lambotte, Mathieu & De Cara, Stéphane & Brocas, Catherine & Bellassen, Valentin, 2021. "Carbon footprint and economic performance of dairy farms: The case of protected designation of origin farms in France," Agricultural Systems, Elsevier, vol. 186(C).
    5. Mathieu Lambotte & Stéphane de Cara & Catherine Brocas & Valentin Bellassen, 2021. "Carbon footprint and economic performance of dairy farms: the case of protected designation of origin dairy farms in France [Bilan carbone et performance économique des exploitations laitières : le," Post-Print hal-03021963, HAL.
    6. Judit Nagy & Zsófia Jámbor, 2019. "Competitiveness in Dairy Trade – the Case of EU and the Visegrad Group Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(4), December.
    7. Jong, Winand de & Ihle, Rico & Jongeneel, Roel, 2018. "Structural convergence between the dairy sectors of the EU-27 Member States since the Eastern Enlargement," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271959, European Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabio A. Madau & Roberto Furesi & Pietro Pulina, 2017. "Technical efficiency and total factor productivity changes in European dairy farm sectors," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-14, December.
    2. Kempen, Markus & Witzke, Peter & Pérez Domínguez, Ignacio & Jansson, Torbjörn & Sckokai, Paolo, 2011. "Economic and environmental impacts of milk quota reform in Europe," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 29-52, January.
    3. Juan Aparicio & Magdalena Kapelko & Lidia Ortiz, 2021. "Modelling environmental inefficiency under a quota system," Operational Research, Springer, vol. 21(2), pages 1097-1124, June.
    4. Zdenek, Radek & Lososova, Jana, 2014. "Factors Influencing The Labour Productivity In Dairy Sector In Eu," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-7, October.
    5. Jongeneel, Roel & Gonzalez-Martinez, Ana Rosa, 2022. "The role of market drivers in explaining the EU milk supply after the milk quota abolition," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 194-209.
    6. Abay Mulatu & Ada Wossink, 2014. "Environmental Regulation and Location of Industrialized Agricultural Production in Europe," Land Economics, University of Wisconsin Press, vol. 90(3), pages 509-537.
    7. Lukáš Čechura & Zdeňka Žáková Kroupová & Irena Benešová, 2021. "Productivity and Efficiency in European Milk Production: Can We Observe the Effects of Abolishing Milk Quotas?," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    8. Sneeringer Stacy E, 2009. "Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-35, July.
    9. Fertő, Imre & Csonka, Arnold, 2017. "Válság- és agglomerációs hatások a magyarországi sertéstartásban [Crisis and agglomeration in Hungary s pig production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 105-122.
    10. Marie Dervillé & Gilles Allaire & Élise Maigné & Éric Cahuzac, 2017. "Internal and contextual drivers of dairy restructuring: evidence from French mountainous areas and post†quota prospects," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 91-103, January.
    11. Alfons Weersink & Christin Eveland, 2006. "The Siting of Livestock Facilities and Environmental Regulations," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 159-173, March.
    12. Bonnet, Céline & Corre, Tifenn & Réquillart, Vincent, 2015. "Price Transmission in Food Chains: The Case of the Dairy Industry," TSE Working Papers 15-563, Toulouse School of Economics (TSE).
    13. Ang, Frederic & Oude Lansink, Alfons, 2014. "Dynamic profit inefficiency: a DEA application to Belgian dairy farms," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182649, European Association of Agricultural Economists.
    14. Garth Holloway & Donald Lacombe & James P. LeSage, 2007. "Spatial Econometric Issues for Bio‐Economic and Land‐Use Modelling," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 549-588, September.
    15. Giuseppe Todde & Lelia Murgia & Maria Caria & Antonio Pazzona, 2018. "A Comprehensive Energy Analysis and Related Carbon Footprint of Dairy Farms, Part 1: Direct Energy Requirements," Energies, MDPI, vol. 11(2), pages 1-14, February.
    16. Laroche Dupraz, C. & Postolle, A., 2013. "Food sovereignty and agricultural trade policy commitments: How much leeway do West African nations have?," Food Policy, Elsevier, vol. 38(C), pages 115-125.
    17. Niedermayr, Andreas & Kapfer, Martin & Kantelhardt, Jochen, 2016. "Using Econometric Models To Analyse The Spatial Distribution Of Oil Pumpkin Cultivation In Austria," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244886, German Association of Agricultural Economists (GEWISOLA).
    18. Larue, Solene & Abildtrup, Jens & Schmitt, Bertrand, 2008. "Modelling the Spatial Structure of Pig Production in Denmark," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44281, European Association of Agricultural Economists.
    19. Carl Gaigné & Julie Le Gallo & Solène Larue & Bertrand Schmitt, 2012. "Does Regulation of Manure Land Application Work Against Agglomeration Economies? Theory and Evidence from the French Hog Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 116-132.
    20. Yuan, Lingran & Zhang, Qizheng & Wang, Shuo & Hu, Weibin & Gong, Binlei, 2022. "Effects of international trade on world agricultural production and productivity: evidence from a panel of 126 countries 1962-2014," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(2), March.

    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:eee:agisys:v:153:y:2017:i:c:p:1-10. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    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.