Economic and environmental consequences of milk quota abolition in the Netherlands

Research output: Chapter in Book/Report/Conference proceedingAbstractAcademic

Abstract

This study used a whole-farm optimization model to analyse the impact of the abolition of the milk quota on
the economic and environmental performance of an average Dutch dairy farm. The abolition of the milk quota
system in the Netherland was accompanied by the introduction of a new manure policy to limit phosphate
excretion on expanding dairy farms. The new policy prescribes that any increase in phosphate excretion should
be partly processed and partly applied to additional farmland. In addition, phosphate quotas are introduced.
Changes in farm structure, management, labour income, nitrogen and phosphate surpluses, and greenhouse
gas emissions were assessed by comparing a farm before and after quota abolition and introduction of the new
manure policy. Results show that based on current prices, increasing the number of cows after quota abolition
is profitable until manure processing or land purchases is required to comply with the new manure policy.
Farm intensity increases by about 4%, from 13,578 kg milk per hectare before quota abolition, to 14,130
kg milk per hectare after quota abolition. Labour income increases by €505 per year. When costs of manure
processing or land decrease, or when milk prices increase, further farm expansion becomes profitable. Results
show that the quota abolition, accompanied by a new manure policy, will slightly increase nutrient losses per
ha, due to an increase in farm intensity. Greenhouse gas emissions per unit of milk will hardly change, but
total greenhouse gas emissions will increase linearly with an increase in the number of cows.
Original languageEnglish
Title of host publicationBook of Abstracts of the 67st Annual Meeting of the European Federation of Animal Science
Place of PublicationWageningen
PublisherWageningen Academic Publishers
Pages25-25
Publication statusPublished - 2016
Event67st Annual Meeting of the European Federation of Animal Science - Belfast, United Kingdom
Duration: 29 Aug 20162 Sep 2016

Conference

Conference67st Annual Meeting of the European Federation of Animal Science
CountryUnited Kingdom
CityBelfast
Period29/08/162/09/16

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