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Structural Change and Policy Reform in the UK Dairy Sector
Author(s) -
Colman David,
Burton Michael,
Rigby Dan,
Franks Jeremy
Publication year - 2002
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2002.tb00042.x
Subject(s) - scope (computer science) , restructuring , incentive , differential (mechanical device) , estimation , economics , function (biology) , sample (material) , dairy industry , structuring , business , industrial organization , agricultural economics , microeconomics , finance , chemistry , food science , management , chromatography , evolutionary biology , computer science , engineering , biology , programming language , aerospace engineering
Estimation of a cost function for a representative sample of UK dairy producers allows future re‐structuring of the industry to be simulated using a model which incorporates producers' differential costs and milk prices. Consideration is also given to reductions in producer prices and to the introduction of an A/B quota system. The results indicate that, despite the history of quota trading in the UK, there is considerable scope for further restructuring in the industry to take advantage of differential incentives between producers. It is also projected that UK milk supply would increase if quota restrictions were removed.