Could EU dairy quota removal favour some dairy production systems over others? The case of French dairy production systems

Thibault Salou, Hayo M.G. van der Werf, Fabrice Levert, Agneta Forslund, Jonathan Hercule and Chantal Le Mouël

Agricultural Systems, 2017, vol. 153, issue C, 1-10

Abstract: Since the 1st of April 2015, European dairy quotas, one of the iconic instruments of the Common Agricultural Policy, have been removed. With this removal, the European Commission expects to develop a more competitive and market-oriented dairy sector in light of increasing world food demand. In countries such as France, where quotas were administratively managed and strongly linked to land, this system maintained dairy production in all regions but also sustained inefficient dairy production systems. With quota removal, changes such as concentration of production in the most favourable areas, enlargement of dairy farms and restructuring of the dairy sector to increase the efficiency of production systems are likely. The impacts of quota removal on markets, as well as the localisation of dairy production, have been widely studied. The impacts on the distribution of dairy production across various production systems have been less studied. We use MATSIM-LUCA, a partial equilibrium economic model, to assess the impacts of dairy quota removal on i) markets and prices and ii) redistribution of production among dairy production systems in France. We consider several world demand scenarios for dairy and meat products to test the sensitivity of our results to future world demand for these products.

Keywords: Dairy production system; Dairy quotas; Partial equilibrium modelling; Demand (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:agisys:v:153:y:2017:i:c:p:1-10

DOI: 10.1016/j.agsy.2017.01.004

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