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Title: Economic analysis of the effects of the expiry of the EU milk quota system
Abstract
The study has been prepared by the Institut d'Economie Industrielle. The objective of the study is to provide a quantitative assessment of the impact of the abolition of EU milk quotas on the EU dairy sector. The impacts of four separate policy scenarios were assessed compared to a baseline scenario (that is considered to be continuation of the current quota system in the medium term). Two policy scenarios fit in the concept of 'soft landing', where milk quotas are gradually increased over a six year period before abolition, while two 'hard landing' scenarios assess the impact of an abrupt expiry of the quota system. In addition, sensitivity analysis has been carried out on a number of important assumptions that determine the outcome of the results. Preliminary results of the study were presented at the Stakeholders' Conference on the future of the dairy sector on 11 January 2007.The impact assessments of the 'soft landing' scenarios demonstrate that a gradual increase of quotas leads to a steady price trend towards a 'without quota' situation, enabling a smooth adjustment for producers and processors. On the contrary, the abrupt quota removal in the 'hard landing' scenarios generates a relatively big price shock and a more uneven development over individual Member States. From an efficiency viewpoint the 'hard landing' scenarios benefit low cost (competitive) producers, but the costs of adjustment, such as exit costs, might be higher. Even under the soft landing scenarios, the impact of a gradual quota increase on milk production varies largely among Member States leading to a partial fulfilment of the additional quotas at the EU level.
Author (Corp. Body): Institut d'économie industrielle
Publisher: Europäische Kommission / Generaldirektion Landwirtschaft und Ländliche Entwicklung, Brüssel
Year: 2008
ISBN / ISSN / Kat.Nr: Contract 30-C3-0144181/00-30
Language: en
Ressource: Einzelne Berichte, Studien
Keyword: Agricultural PolicyCommon agricultural policyAgricultural developmentRural developmentMilk market regulationagricultural policyagricultural developmentdairy farming
Subject: Agricultural policy. Agricultural development
Countries Scheme: Europe. General Resources
Online Ressource: vorübergehend nicht erreichbar!
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Europäische Kommission (http://ec.europa.eu)
Title: Economic Impact of the Abolition of the Milk Quota Regime : Regional Analysis of the Milk Production in the EU
Abstract
The dairy sector makes a substantial contribution to the agricultural turnover in many Member States (MS) of the European Union (EU) as well as in the EU as a whole. Nevertheless, within the EU-27, the size and agricultural importance of the dairy sector varies considerably between MS and across regions, basically reflecting climatic and other agricultural factors. The EU dairy market is regulated by the Common Market Organisation (CMO) for milk and milk products, of which the milk quota regime is one of the most noticeable elements. The EU milk quota system was originally introduced in 1984, in order to limit public expenditure on the sector, to control milk production, and to stabilize milk prices and the agricultural income of milk producers. Since the milk quota regime was introduced, milk quota has become a scarce production factor: on the one hand limiting milk production and, on the other hand, stabilising milk producer prices and maintaining dairy activities in less competitive regions. However, in the course of time European dairy policy has been continuously changing and has increasingly encouraged producers to be more market-oriented. Policy developments, including reductions of intervention prices and specific quota increases of various amounts to MS, together with most recent market developments, have provoked that quota is no more binding in some MS and regions of the EU. With the Luxembourg Agreement on the Mid-Term-Review (MTR) on 26 June 2003, the spotlight shifted again on the EU's milk quota regime, because the MTR stipulated that the milk quota system will come to an end in 2015. Within the Health Check of the Common Agricultural Policy (CAP) the European Commission endorsed the proposal of milk quota abolition and suggested an increase of quota by 1% annually from 2009 to 2013 to allow a "soft landing" of the milk sector to the end of quotas. In this context it is especially important to clarify, which economic effects can be expected of an abolition of the milk quota regime.
Author (Corp. Body): Institute for Prospective Technological Studies | Agriculture and Life Science in the Economy
Publisher: Europäische Kommission / Generaldirektion Landwirtschaft und Ländliche Entwicklung, Brüssel
Year: 2009
Language: en
Ressource: Einzelne Berichte, Studien
Keyword: Agricultural PolicyCommon agricultural policyAgricultural developmentRural developmentMilk marketagricultural policyagricultural developmentdairy farming
Subject: Agricultural policy. Agricultural development
Countries Scheme: Europe. General Resources
Online Ressource: vorübergehend nicht erreichbar!
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Europäische Kommission (http://ec.europa.eu)
Title: Analysis on future developments in the milk sector
Abstract
This report proposes a prospective vision of the future of the European milk market after the removal of the quotas in 2015. The study has been conducted through consultation of a panel of independent experts. Experts have offered their opinions to describe future trends, driving factors, perspectives and challenges expected in the years to come and they have concluded by providing recommendations. The focus of the analysis has been to define likely scenarios following the end of the quota regime in the EU27. Scenarios are described as a synthesis of experts’ opinion reports. They have been introduced by a theoretical analysis surveying literature on the topic and a descriptive chapter including data on trends in the dairy sector. The analysis takes into account the role of market forces, organisational systems (in particular, producer organisations and inter-branch organisations) and policy measures in drawing perspectives of the milk sector.
Author: Joost M.E. Pennings | Ludwig Theuvsen | Paolo Sckokai
Contributer: Ernst & Young
Publisher: Europäische Kommission / Generaldirektion Landwirtschaft und Ländliche Entwicklung, Brüssel
Year: 2013
ISBN / ISSN / Kat.Nr: AGRI-2012-C4-04
Language: en
Ressource: Einzelne Berichte, Studien
Keyword: Agricultural PolicyCommon agricultural policyAgricultural developmentRural developmentMilk marketagricultural policyagricultural developmentdairy farming
Subject: Agricultural policy. Agricultural development
Countries Scheme: Europe. General Resources
Online Ressource: vorübergehend nicht erreichbar!
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Europäische Kommission (http://ec.europa.eu)
Title: The effect of farmers’ cooperatives on price stabilization in the dairy sector
Abstract
The imbalances in bargaining power between the contracting parties in the food supply chain have drawn much attention, also from policy makers. The European Commission is committed to facilitate the restructuring of the sector by encouraging the creation of voluntary agricultural producer organisations. DG Agriculture and Rural Development has launched a large study, “Support for Farmers' Cooperatives”, that will provide the background knowledge that will help farmers organise themselves in cooperatives as a tool to consolidate their market orientation and so generate a solid market income. In the framework of this study, this report provides information on cooperatives’ ability to stabilise producer prices in order to avoid harmful effects from world market commodity price fluctuations into farm level. In this case study, the following research questions have been guiding the research. First, what is the nature of fluctuation in dairy prices in Europe? Second, how is the dairy market integrated horizontally, i.e. has the price fluctuation similar patterns in different EU countries? Third, how is the price fluctuation in the commodity market transmitted to producer prices? And finally and most importantly, have the cooperatives been successful in stabilizing producer prices and do the cooperatives behave differently from investor owned firms (IOF) when setting the producer price?
Author: Hanisch, Markus | Müller, Malte | Rommel, Jens
Series Title:Europäische Kommission - Support for Farmers' Cooperatives : Case Study Report
Contributer: Wageningen University, The Netherlands | Agricultural Economics Research Institute, Greece | HIVA Catholic University of Leuven, Belgium
Publisher: Europäische Kommission / Generaldirektion Landwirtschaft und Ländliche Entwicklung, Brüssel
Year: 2012
ISBN / ISSN / Kat.Nr: 30-CE-0395921/00-42
Language: en
Ressource: Einzelne Berichte, Studien
Keyword: Common agricultural policyAgricultural developmentRural developmentMilk marketMilk pricePrice levelagricultural policycooperative
dairy farming
Subject: Agricultural policy. Agricultural development
Countries Scheme: Europe. General Resources
Online Ressource: vorübergehend nicht erreichbar!
Bitte beachten Sie die urheberrechtlichen Bedingungen der Dokumentenbenutzung / Please observe the copyright when accessing the document | Quelle / Source: Europäische Kommission (http://ec.europa.eu)
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