Analysis of Technical and Policy Changes for Belgian Dairy Farms Using an Estimated Augmented SGM Cost Function

Rembert De Blander () and Bruno Henry de Frahan

No 114546, 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists

Abstract: This paper provides some evidence on the evolution of marginal and average costs of dairy farms in Belgium between 1990 and 2007. It investigates the effect of the 2003 Mid-Term Review by adding time trends and linear splines to an augmented multi-input multi-output symmetric generalized McFadden cost function and estimating it using a panel of Belgian dairy farms. Existence of size, scale and scope economies in the dairy sub-sector is also examined. This exercise increases our understanding of dairy farm responses to reforms and helps envision the possible effects of ending the milk quota system as it is now planned for 2015.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Pages: 13
Date: 2011
New Economics Papers: this item is included in nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae11:114546

DOI: 10.22004/ag.econ.114546

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