The Impact of the Berlin Accord and European Enlargement on Dairy Markets

Frank Fuller, John Beghin (), Samarendu Mohanty, Jay Fabiosa, Cheng Feng and Phil Kaus

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: Using a world agricultural model, we analyze the impact on dairy markets of the Berlin Accord on the European Union (EU) Common Agricultural Policy (CAP) Reforms. We also investigate the consequences of enlargement of the EU to include the Czech Republic, Hungary and Poland for the same markets. We produce a market outlook up to 2010 for these two scenarios. The Berlin Accord induces lower EU milk and dairy prices. A change in relative prices between cheese and butter-skim milk powder (SMP) occurs after 2005 and induces an expansion of cheese production, consumption and exports at the expense of the butter–SMP sector. Accession of the three central and eastern European countries (CEECs) leads to a permanent but moderate decrease in EU prices of milk and dairy products. For the three acceding CEECs, domestic prices increase dramatically. Their final consumption of milk decreases and dairy product consumption drops considerably. The derived demand of milk in dairy production increases, however, because of the higher prices for dairy products, benefiting dairy producers in these CEECs. Dairy exports of the three acceding countries to the EU–15 increase by one to three orders of magnitude, despite building large inventories. The impact of accession on world markets is small.

Date: 1999-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... 45346b30e32f/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: The Impact of the Berlin Accord and European Enlargement on Dairy Markets (1999)
Working Paper: Impact of the Berlin Accord and European Enlargement on Dairy Markets, The (1999)
Working Paper: Impact of the Berlin Accord and European Enlargement on Dairy Markets, The (1999)
Working Paper: Impact of the Berlin Accord and European Enlargement on Dairy Markets, The (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:199901010800001257

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().