An Analysis of Dairy Policy Reform and Trade Liberalisation

These studies have been carried out under the Assessing Future Agricultural Markets, Trade and Policies activity of the 2003-2004 Programme of Work of the OECD’s Committee for Agriculture.  Within this overall activity, studies were scheduled to provide assessments of the market, trade and welfare impacts of domestic and trade policy reform for selected commodities that currently receive very high support and protection.

Trade and Economic Effects of Milk Quotas Systems
This report investigates analytically and empirically the market and welfare impacts of milk quota systems and the interaction of quota with other policy tools within a context of specific policy objectives. It also discusses the milk production potential in quota-operating countries following the removal of quotas.  The main authors of this report are Pavel Vavra and Roger Martini, economists in the OECD Directorate for Agriculture.  Many colleagues in the OECD Secretariat and delegates from Member countries furnished useful comments on earlier drafts of this report.

An Analysis of International Dairy Trade Liberalisation
This report investigates empirically the impacts of international dairy trade liberalisation with the Secretariat’s Aglink and PEM models.  In this analysis, the individual policy measures related to quota systems and price support instruments are simultaneously reduced or removed in order to assess the impact of international dairy trade liberalisation on production, consumption, trade, prices, income and welfare.  The main authors of this report are Pavel Vavra and Roger Martini, economists in the OECD Directorate for Agriculture.  Many colleagues in the OECD Secretariat and delegates from Member countries furnished useful comments on earlier drafts of this report.

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