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A Micro-economic Analysis of Dairy Farming in the Netherlands

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  • Helming, John
  • Oskam, Arie
  • Thijssen, Geert

Abstract

A unified framework for analyzing the short-term production relationships between outputs and inputs on Dutch dairy farms before and after the introduction of the milk quota system is presented. It is derived from duality theory and estimated using an incomplete panel of Dutch dairy farms. The theoretical framework fits the data well. The supply of unrestricted outputs and the demand for variable inputs are much more responsive to milk quota changes than to price changes. The average estimated shadow price of milk quota in 1984/85-1988/89 was 0.36 guilder per kilogram in 1980/81 prices. The scarcity of milk quota and resources is further investigated for different types of dairy farms. It appears that high shadow prices of quasi-fixed inputs go together with low shadow prices of milk quota. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Helming, John & Oskam, Arie & Thijssen, Geert, 1993. "A Micro-economic Analysis of Dairy Farming in the Netherlands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 20(3), pages 343-363.
    • Handle: RePEc:oup:erevae:v:20:y:1993:i:3:p:343-63
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    Cited by:

    1. Zohra Bouamra‐Mechemache & Jean‐Paul Chavas & Tom Cox & Vincent Réquillart, 2002. "EU Dairy Policy Reform and Future WTO Negotiations: a Spatial Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 233-257, July.
    2. David Colman & Michael Burton & Dan Rigby & Jeremy Franks, 2002. "Structural Change and Policy Reform in the UK Dairy Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 645-663, November.
    3. Antonio Alvarez & Carlos Arias & Luis Orea, 2006. "Explaining Differences in Milk Quota Values: The Role of Economic Efficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 182-193.
    4. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    5. John Baffes, 1998. "Structural reforms and price liberalization in Mexican agriculture," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(5), pages 575-587.
    6. Alfons Oude Lansink & Geert Thijssen, 1998. "Testing among functional forms: an extension of the Generalized Box-Cox formulation," Applied Economics, Taylor & Francis Journals, vol. 30(8), pages 1001-1010.
    7. Wieck, Christine & Heckelei, Thomas, 2004. "Development Of Marginal Cost Distributions In Dairy Production Regions Of The Eu," 2004 Annual meeting, August 1-4, Denver, CO 19943, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Bezlepkina, Irina V. & Oude Lansink, Alfons G.J.M. & Oskam, Arie J., 2001. "Farm Firm Micro-Econometric Modelling:Empirical Evidence From Russian Dairy Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20464, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Letort, Elodie & Dupraz, P, 2023. "Animal feed as a lever to reduce methane emissions: a micro-econometric approach applied to French dairy farms," Working Papers 338908, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

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