The direct and indirect economic impact of GATT agreement and new CAP policies on the competitiveness of sheep production in the south of Portugal
1999
Ventura Lucas, M.R. (University of Evora (Portugal). Farm Management Dept.)
With the new CAP this policy of incentives to production is replaced by a policy of direct compensation to income, whether the farmer is competitive or not. Based on five representative sheep producing farms in southern Portugal, that is, the Alentejo region, this report seeks to analyze the impact of the expected changes in agricultural incentive programs of the agreements on the evolution of competitiveness of sheep production systems. This impact is assessed both directly and indirectly, that is, through its effect on cereal production, which is complementary to sheep production. The results indicate that the effects of continuous decrease in prices and in the levels of income aids on the competitiveness of the sheep meat in the Alentejo region are not very negative. One can even admit that the present levels of competitiveness can be maintained or improved through the adoption of technological improvements in the production systems.
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