European Union dairy policy reform: impact and challenges

Recent Common Agricultural Policy (CAP) reforms have affected dairy policy, including the milk quota system, and increased the market orientation of the sector. A modelling exercise, using the European Dairy Industry Model (EDIM), simulates an initial sharp decline in the EU milk price in response to the decrease in the intervention prices of butter and SMP after 2003, followed by a period of stability and an increase from 2007/08 as the demand for dairy protein products increases over time and EU milk supply is still restricted by quotas. The phasing out of the milk quota following the implementation of the 2009 Health Check is estimated to lead to an increase in milk production and a decrease in the milk price both within and without the European Union. The gap between EU domestic and border prices is expected to continue to narrow. Looking at developments in dairy markets between 2000 and 2007, the study finds that milk prices did not decrease as much as expected because the intervention prices were no longer binding, in particular for skimmed milk powder. The income of dairy farms increased as decline in milk prices was more than compensated by the introduction of dairy premium and higher farm productivity due to the increase in farm size. However, since 2007, incomes of dairy farmers have strongly fluctuated as both milk and feed prices have been highly variable in opposite directions.

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Main Author: Jongeneel, R.A.
Format: Article in monograph or in proceedings biblioteca
Language:English
Published: OECD
Subjects:Life Science,
Online Access:https://research.wur.nl/en/publications/european-union-dairy-policy-reform-impact-and-challenges
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spelling dig-wur-nl-wurpubs-4064752024-08-06 Jongeneel, R.A. Article in monograph or in proceedings Disaggregated Impacts of CAP Reforms: Proceedings of an OECD workshop, Paris, France, 10 - 11 March, 2010 ISBN: 9789264096530 European Union dairy policy reform: impact and challenges 2011 Recent Common Agricultural Policy (CAP) reforms have affected dairy policy, including the milk quota system, and increased the market orientation of the sector. A modelling exercise, using the European Dairy Industry Model (EDIM), simulates an initial sharp decline in the EU milk price in response to the decrease in the intervention prices of butter and SMP after 2003, followed by a period of stability and an increase from 2007/08 as the demand for dairy protein products increases over time and EU milk supply is still restricted by quotas. The phasing out of the milk quota following the implementation of the 2009 Health Check is estimated to lead to an increase in milk production and a decrease in the milk price both within and without the European Union. The gap between EU domestic and border prices is expected to continue to narrow. Looking at developments in dairy markets between 2000 and 2007, the study finds that milk prices did not decrease as much as expected because the intervention prices were no longer binding, in particular for skimmed milk powder. The income of dairy farms increased as decline in milk prices was more than compensated by the introduction of dairy premium and higher farm productivity due to the increase in farm size. However, since 2007, incomes of dairy farmers have strongly fluctuated as both milk and feed prices have been highly variable in opposite directions. en OECD application/pdf https://research.wur.nl/en/publications/european-union-dairy-policy-reform-impact-and-challenges 10.1787/9789264097070-8-en https://edepot.wur.nl/169575 Life Science Wageningen University & Research
institution WUR NL
collection DSpace
country Países bajos
countrycode NL
component Bibliográfico
access En linea
databasecode dig-wur-nl
tag biblioteca
region Europa del Oeste
libraryname WUR Library Netherlands
language English
topic Life Science
Life Science
spellingShingle Life Science
Life Science
Jongeneel, R.A.
European Union dairy policy reform: impact and challenges
description Recent Common Agricultural Policy (CAP) reforms have affected dairy policy, including the milk quota system, and increased the market orientation of the sector. A modelling exercise, using the European Dairy Industry Model (EDIM), simulates an initial sharp decline in the EU milk price in response to the decrease in the intervention prices of butter and SMP after 2003, followed by a period of stability and an increase from 2007/08 as the demand for dairy protein products increases over time and EU milk supply is still restricted by quotas. The phasing out of the milk quota following the implementation of the 2009 Health Check is estimated to lead to an increase in milk production and a decrease in the milk price both within and without the European Union. The gap between EU domestic and border prices is expected to continue to narrow. Looking at developments in dairy markets between 2000 and 2007, the study finds that milk prices did not decrease as much as expected because the intervention prices were no longer binding, in particular for skimmed milk powder. The income of dairy farms increased as decline in milk prices was more than compensated by the introduction of dairy premium and higher farm productivity due to the increase in farm size. However, since 2007, incomes of dairy farmers have strongly fluctuated as both milk and feed prices have been highly variable in opposite directions.
format Article in monograph or in proceedings
topic_facet Life Science
author Jongeneel, R.A.
author_facet Jongeneel, R.A.
author_sort Jongeneel, R.A.
title European Union dairy policy reform: impact and challenges
title_short European Union dairy policy reform: impact and challenges
title_full European Union dairy policy reform: impact and challenges
title_fullStr European Union dairy policy reform: impact and challenges
title_full_unstemmed European Union dairy policy reform: impact and challenges
title_sort european union dairy policy reform: impact and challenges
publisher OECD
url https://research.wur.nl/en/publications/european-union-dairy-policy-reform-impact-and-challenges
work_keys_str_mv AT jongeneelra europeanuniondairypolicyreformimpactandchallenges
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