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This report is an attempt to improve understanding of the dairy sector through an analysis of the trade and economic effects of the main policy measures (subsidies) applied to the dairy sector.
Global trade liberalization-- reducing both negative and positive protection in line with the Dunkel proposal-- would gain developing countries an estimated $60 billion a year.
This article analyzes the efficiency of partial market liberalization and policy reform with an application to the European dairy sector. In a second best world, partial moves toward market liberalization are not always efficiency improving. We develop a general equilibrium model to investigate the efficiency implications of discrete changes in government policy. The analysis covers price and quantity instruments used in both domestic and trade policy. We derive simple conditions under which partial market liberalization is efficiency improving. We apply the approach to agricultural policy reform in the European dairy sector and identify market liberalization scenarios that are "not" efficiency improving.
This book provides an in-depth look at Europe's changing agricultural and food markets, focusing on the impacts of recent policy reforms, enlargement of the European Union (EU), and trade liberalisation. The papers included in this book braid together four important themes in European agriculture and food markets: the impacts of EU enlargement on productivity growth and catching up in the Central and Eastern European countries (CEECs), the influence of food quality standards on market structures in the CEECs and on trade, the impacts of common agricultural policy (CAP) reforms on EU and world markets, and the costs of adjusting to CAP reforms in specific sectors. The insights provided in these papers into the empirical interactions between policies, institutions, and market outcomes, both domestically and internationally, are valuable to policy makers and researchers interested in the future of European agriculture.
This publication, part of a series of OECD studies which investigate trade policies, agricultural production and their impact on the environment, focuses on the dairy sector in OECD countries. Chapters discuss a range of issues including: the environmental impacts of dairy farming in terms of water pollution, greenhouse gases, soil quality, water use and biodiversity; the structure and practices of dairy production; agricultural support policies; the consequences of further trade liberalisation and the likely expansion of milk production; economic instruments, command and institutional policy measures; and competitiveness issues, including the effect of manure management regulations. The report contains agri-environmental indicators for the dairy sector, and also considers policies that OECD governments, particularly in Europe, have introduced to promote organic milk production and their impact on trade flows.