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Milk Quotas in the European Union:Distribution of Marginal Costs and Quota Rents

Auteur: Cathagne Adeline, Guyomard Hervé, Levert Fabrice
Editeur: EDIM
Lieu:
Année: 2006
Pages: 16
Mots-clés: 

"The European Union (EU) introduced the milk quota regime in 1984. The 1992 Common Agricultural Policy (CAP) reform left the milk quota policy unchanged. The Agenda 2000
CAP reform included changes in the milk policy while maintaining the quota instrument until 2007/08. In the same way, the June 2003 CAP reform includes changes in the milk policy(support price cuts partially compensated by direct aids included in the Single Farm Payment)
but it maintains the quota instrument until 2014/15. There is however increasing pressure for suppressing the quota instrument before that date. At the very minimum, there is increasing pressure for analysing what could be the potential impacts of further reforms of the EU dairy
policy. In particular, there is increasing pressure for analysing what could be the impacts of a scenario where quotas would be freely transferable, not only in each Member State but also between Member States, and the consequences of various scenarios of milk quota exit. In that perspective, two parameters are clearly of crucial importance, i.e., milk production marginal costs and milk supply elasticities. The main objective of this study is to provide estimates of milk production marginal costs for the various EU Member States on the basis of individual data drawn from the European FADN database."

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