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The French Dairy Market Impact Of Dairy Quotas And Cessaton Schemes

Author

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  • Veaux, Jean-Louis

Abstract

The "Green Europe" was created in 1967 in order to integrate the agricultural economy of the Member Countries. For the dairy market, the Community implemented programs aimed at ensure good supply of dairy products, reasonable revenue to dairy producers, and occupation of some less favored areas. The subsidizing and public storage program for dairy products (milk powder and butter) led to surplus production. The cost of such a policy became unacceptable for Community Members. In 1984, the Minister of Agriculture Council decided to implement a quota program on milk production coupled with strong cessation schemes in order to reduce milk production and improve efficiency of dairy farms. This program led to a 25% reduction in number of dairy farms, a 8% reduction in milk production and improved average productivity of dairy cows. The cost of the dairy policy decreased 20%, including cost for supply and demand management of the dairy sector. Public intervention on the dairy market became unnecessary and revenue of dairy producers improved. Social goals, placed at a high priority level have been fulfilled.

Suggested Citation

  • Veaux, Jean-Louis, 1991. "The French Dairy Market Impact Of Dairy Quotas And Cessaton Schemes," Graduate Research Master's Degree Plan B Papers 11122, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midagr:11122
    DOI: 10.22004/ag.econ.11122
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