The Ratio of Fat Value to Non-fat Value of Milk: An Econometric Model of Effects on Intervention Price Changes in the EC

J D Landheer

European Review of Agricultural Economics, 1987, vol. 14, issue 2, 161-78

Abstract: The ratio between the value of the butterfat and that of the nonfat milk components is connected with the intervention pri ces of butter and skimmed milk powder. Therefore they influence also commercial sales and the amount paid out in refunds and subsidies by the EC. In this article, a simple model has been developed that enabl es all these effects to be quantified. The final conclusion is that, in the current situation, neither the producer nor the EC has anythin g to gain from a change in the "fat/nonfat ratio." Copyright 1987 by Oxford University Press.

Date: 1987
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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