Article

Impact of the abolition of EU Milk quotas on Agriculture in the UK

European Association of Agricultural Economists, 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 01/2008;
Source: RePEc

ABSTRACT In recent years the CAP has undergone significant reforms, but the dairy sector has largely avoided wholesale changes. The sector, however, is now faced with a significant effort by the Commission to instigate reform. In this study the FAPRI-UK modelling system is simulated to identify the impact of abolishing or phasing out EU milk quotas on the dairy sector in the UK and the results are compared against a 2007 Baseline projection (2007--2016). The results demonstrate that although the impact of the abolition of dairy quotas is fairly modest at the EU-25 level, significant impacts are apparent at the individual country level.

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    ABSTRACT: The European Union (EU) dairy sector is facing significant changes due to EU enlargement, the Luxembourg reform and ongoing World Trade Organisation (WTO) negotiations. This paper explores the impact of alternative dairy policies in the context of a WTO agreement and further dairy policy adjustments. In particular, it analyses the impact of gradual but significant increases in EU milk quota and discusses the implications of different changes in the allocation of milk quotas. These scenarios are compared with the status quo as decided in the Common Agricultural Policy reform of 2003. We find that, by 2014¿2015, the market effects of abolishing quota are similar to those of a 2 per cent gradual quota increase starting in 2009
    European Review of Agricultural Economics 35 (2008) 4.

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May 20, 2014