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The Impact of Milk Quota Abolishment on Dutch Agriculture and Economy: Applying an Agricultural Sector Model Integrated Into a Mixed Input-Output Model

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  • Helming, John F.M.
  • Peerlings, Jack H.M.

Abstract

A modelling system is presented and used to analyse the impact of milk quota abolishment on Dutch agriculture and economy. The modelling system consists of a regionalised, agri-environmental, partial equilibrium, mathematical programming model of agriculture supply in the Netherlands integrated into a mixed input-output model. It was found that abolition of the milk quota system has large impacts on milk production and livestock numbers and composition. The latter is explained by the strict mineral and manure policies in the Netherlands; an increase in the numbers of dairy cows leaves less room for other livestock. It is also found that, although the total effect on gross value added in the Dutch economy is limited, the effects for individual industries can be large.

Suggested Citation

  • Helming, John F.M. & Peerlings, Jack H.M., 2002. "The Impact of Milk Quota Abolishment on Dutch Agriculture and Economy: Applying an Agricultural Sector Model Integrated Into a Mixed Input-Output Model," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24911, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24911
    DOI: 10.22004/ag.econ.24911
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    References listed on IDEAS

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    1. Horner, G.L. & Corman, J. & Howitt, R.E. & Carter, C.A. & MacGregor, R.J., 1992. "The Canadian Regional Agriculture Model Structure, Operation and Development," Papers 1-92, Gouvernement du Canada - Agriculture Canada.
    2. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    3. MHC Komen & JHM Peerlings, 2001. "Endogenous technology switches in Dutch dairy farming under environmental restrictions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(2), pages 117-142, June.
    4. James, D. E. & deL. Musgrove, A. R. & Stocks, K. J., 1986. "Integration of an economic input-output model and a linear programming technological model for energy systems analysis," Energy Economics, Elsevier, vol. 8(2), pages 99-112, April.
    5. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
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    Cited by:

    1. Oudendag, Diti & Hoogendoorn, Mark & Jongeneel, Roel, 2014. "Agent-Based Modeling of Farming Behavior: A Dutch Case Study on Milk Quota Abolishment and Sustainable Dairying," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182700, European Association of Agricultural Economists.
    2. Helming, John F.M. & van Berkum, Siemen, 2008. "Effects of abolition of the EU milk quota system for Dutch agriculture and environment," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43966, European Association of Agricultural Economists.
    3. Adenuga, Adewale Henry & Davis, John & Hutchinson, George & Patton, Myles & Donnellan, Trevor, 2020. "Analysis of the effect of alternative agri-environmental policy instruments on production performance and nitrogen surplus of representative dairy farms," Agricultural Systems, Elsevier, vol. 184(C).
    4. 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.
    5. Castillo-Valero, Juan S. & Sanchez-Garcia, Mercedes & Garcia-Cortijo, Mari Carmen, 2016. "Predicting grower choices in a regulated environment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), November.

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