The end of milk quotas: A graphic analysis of the political tools to manage the European market
2017
Laroche-Dupraz, Catherine
Milk quotas were scrapped in 2015, but the price of European milk has been following the global price since 2006. From 2014 to 2016, the price drop translated as a crisis that has made stakeholders raise the question once again of bringing back quantitative regulation for European supply. Using a simplified partial equilibrium model of the milk market in two countries, we show that to understand the effects of supply management tools and their implications, it is necessary to take into account the heterogeneity of countries’ strategic approaches to farms’ productive investment and the industrial approach of processing companies.
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