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The Implications of Quotas and Supply Control Policy in the British Potato Market

C T Ennew and Ben White

European Review of Agricultural Economics, 1989, vol. 16, issue 2, 243-56

Abstract: The British Potato market offers a unique opportunity to assess the operation of a combined area quota and support buying policy in a market where imports have free access. The paper discusses the issues which confront the policymakers involved in the market and it describes a market simulation model. The simulation model is used to forecast market variables over the period 1986-1990 on the basis of two assumptions, first that the current procedures for policy formation will continue and second an alternative "free-market" situation will prevail, where the quota constraint is removed and support buying is fixed at zero. These forecasts indicate that the current policy will not significantly increase producer price, but it does bring a greater degree of price stability than the "free-market" alternative. Copyright 1989 by Oxford University Press.

Date: 1989
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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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