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The Implications of Quotas and Supply Control Policy in the British Potato Market

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  • Ennew, C T
  • White, B

Abstract

The British Potato market offers a unique opportunity to assess the operation of a combined area quota and support buying policy in a market where imports have free access. The paper discusses the issues which confront the policymakers involved in the market and it describes a market simulation model. The simulation model is used to forecast market variables over the period 1986-1990 on the basis of two assumptions, first that the current procedures for policy formation will continue and second an alternative "free-market" situation will prevail, where the quota constraint is removed and support buying is fixed at zero. These forecasts indicate that the current policy will not significantly increase producer price, but it does bring a greater degree of price stability than the "free-market" alternative. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Ennew, C T & White, B, 1989. "The Implications of Quotas and Supply Control Policy in the British Potato Market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(2), pages 243-256.
    • Handle: RePEc:oup:erevae:v:16:y:1989:i:2:p:243-56
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