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

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  • 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
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    References listed on IDEAS

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    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.

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