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Agricultural policies affect agricultural production with consequences for the environment. What are the impacts and how might they be affected by further agricultural policy reform? What are governments doing to improve the environmental performance of agriculture and how does this affect international competitiveness?

The Dairy Sector report attempts to answer these questions and many others. The report contains agri-environmental indicators for the dairy sector, and details of the policy measures supporting dairy production and addressing environmental issues. It takes an in-depth look at the sector in OECD countries and focuses on such areas as:
• Further trade liberalisation, the likely expansion of milk production and the environmental concerns relating to water pollution and greenhouse gases.
• Regulations regarding manure management, the cost effect on dairy producers and the differences in international competitiveness.

The Dairy Sector report also points to the policies that OECD governments, particularly in Europe, have introduced to promote organic milk production and their impact on trade flows.

This is the second in a series of in-depth studies undertaken by the OECD to investigate the linkages between agriculture, trade and the environment. The first study on The Pig Sector was published in 2003. A third study examines these issues in The Arable Crop Sector.

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