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Impact of policy-induced structural change on milk quality: evidence from the Flemish dairy sector

Published online by Cambridge University Press:  13 March 2009

Bart Van der Straeten ,
Jeroen Buysse ,
Guido Van Huylenbroeck  and
Ludwig Lauwers
Bart Van der Straeten*
Affiliation:
Department of Agricultural Economics, University of Ghent
Jeroen Buysse
Affiliation:
Department of Agricultural Economics, University of Ghent
Guido Van Huylenbroeck
Affiliation:
Department of Agricultural Economics, University of Ghent
Ludwig Lauwers
Affiliation:
Department of Social Sciences, ILVO (Institute for Agricultural and Fisheries Research), Department of Agricultural Economics, University of Ghent
*
*For correspondence; e-mail: Bart.vanderstraeten@ugent.be
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Abstract

This paper uses a Markov chain model to analyse the dynamics in farm-size distribution among the Flemish dairy sector and the impact of quota policy regulation on such changes. The model predicts a decline of 24% in number of farms in 2014 compared with the current situation with a more liberal exchange policy and a decline of 18% with a restricted quota exchange policy. From these Markov chain model results, we analysed the impact of farm-size distribution on eight different milk quality parameters (total bacterial count, somatic cell count, coliform count, freezing point, urea-N, fat content and protein content and penalty-points). In general, larger farms produce higher quality milk than smaller farms, especially with respect to the microbiological parameters (total bacterial count, somatic cell count and coliform count). The change in farm-size distribution from a liberal quota exchange policy would decrease the average total bacterial count by 18·0%, the somatic cell count by 2·1% and the coliform count by 11·0%. The aggregate performance of the other parameters are smaller with improvements in all cases of <1%.

Keywords

Farm sizemilk quotaMarkov chain
Type
Research Article
Information
Journal of Dairy Research , Volume 76 , Issue 2 , May 2009 , pp. 234 - 240
Copyright
Copyright © Proprietors of Journal of Dairy Research 2009

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