Professional paper
ECONOMICS OF PRODUCTION, RESTRUCTURING AND COMPETITIVENESS IN THE DAIRY SECTOR LINKED TO THE ABOLITION OF QUOTAS
Marina Gašić
orcid.org/0000-0002-1893-3736
; Croatian Employment Service Beketinci, Čepinska 148, 31 403 Vuka, Croatia
Abstract
In the capital city of EU, Bruxelles, there was a rally of milk producers on the day of abolition of milk quotas, which was joined by our own producers. Countries with developed dairy production expect 20% increase in production without economic consequences, however, Croatia has no such market tool because of the loss of a large number of manufacturers, specifically, suppliers of milk. Quotas are not threatening for Croatia because the approved quota is much higher than the amount of the total milk production. According to the European Commission report in December 2013, due to bad climate conditions and the high cost of animal feed, production quota of EU Member States has not been achieved by the lack of about 6%. Good examples are Austria, Cyprus, Poland, Germany, and Denmark which have produced more than their quota. The Common Agricultural Policy provides a practical and organizational support for the Dairy package where there are certain rules for the purchase of milk and its price in the written agreement between producers and dairy industry. During the period of the quota system dairy sector was restructured, that resulted in annual 6% of manufacturers leaving the production. Improving the genetics and efficiency of food leads to an increase in the average yield per cow, although the situation in this regard varies considerably across the EU Member States specialized farms in the EU-15 Member States achieved an average milk yield of 7300 kg/cow for the average herd of 54 cows, while other EU members are eligible for the average milk yield of 5700 kg/cow for the average herd of 19 cows. Due to the structure of the herd we cannot be competitive with farms in the United States which have 115 cows, Australia 258 and New Zealand with 458 cows.
Keywords
abolition of quotas; Common agricultural policy; Dairy package; restructuring and competitiveness
Hrčak ID:
159139
URI
Publication date:
3.6.2016.
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