This paper investigates potential impacts on milk production of Dutch dairy farms if feed prices increase, milk prices decrease and milk quotas are abolished. A quadratic cost function is estimated using panel data on individual dairy farms of the Dutch FADN. Marginal costs and revenues are evaluated to show the heterogeneous farm-level impact of changing prices on potential production developments. The main finding is that potential increases in milk production when quota are abolished, are offset by a decreasing marginal revenue due to lower milk prices, and increasing marginal costs due to higher feed prices.
|Publication status||Published - 2012|
|Event||126th Seminar EAAE: New challenges for EU agricultural sector and rural areas. Which role for public policy? - |
Duration: 27 Jun 2012 → 29 Jun 2012
|Seminar||126th Seminar EAAE: New challenges for EU agricultural sector and rural areas. Which role for public policy?|
|Period||27/06/12 → 29/06/12|