Publications > Cahiers (English)> N° 7, 2nd term 1988

Quotas laitiers
[Milk Quotas]

• [Quotas and milk crisis : the evolution of dairy policy in France and in the EEC], D. Hairy and D. Perraud
• [Two decades of milk quotas in Canada], D.-M. Gouin and M. Morisset
• [The quota regime on the European iron and steel industry], J.-P. Laurencin
• [An application of the EC policy : Britain's choices], A. Burrell
• [The German dairy farmers are facing a supply restraint], J. Zeddies and B. Heim
• [A first year under quotas in two French areas], J.-P. Butault, B. Desbrosses, D. Hairy and D. Perraud
• [Adapting to quotas : a review of advices, practices and analyses review], B. Desbrosses and D. Hairy
• [Juridical nature of dairy quotas and quota transactions], C. de Crisenoy
• [Voiding a quota market, how long ?], D.-Mercier Gouin

Crise laitière et quotas : l'évolution de la politique laitière en France et dans la Communauté
[Quotas and milk crisis : the evolution of dairy policy in France and in the EEC]

D. Hairy and D. Perraud

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 9-36

Abstract : This article aims at giving an analytic interpretation of the policy change induced by dairy quotas. It explains why the dairy crisis in the EEC resulted in quotas as a compromise solution although the majority of the member States had originally rejected this solution. For everybody, it was the lesser of two evils. For four years of quota policy, the regulations have been made more and more complex by the EEC which has allowed national specific systems to develop, leading to two main consequences : the basic principle of quotas have been rather well and quickly accepted ; but it implied a partial renationalisation of dairy policies. Two aspects of the French situation are pointed out. In the beginning, the management of the quota system heavily relied upon the processing industry, and has increasingly tended to be ruled by regional committees, which means a comeback of the farmers unions ; an efficient public policy aiming at the "restructuration" of the French dairy industry was run through subsidies to farmers giving up their deliveries. After an immediate success of these programs the farmers tend to respond less and less. Further structural changes in the production of milk ask for a new regulation : the question of a quota market becomes the center of the French discussions about dairy policy.

Key-words : EEC, France, quota regime, milk production, dairy farming, agricultural policy.

Vingt ans de contingents laitiers : l'expérience canadienne
[Two decades of milk quotas in Canada]

D.-M. Gouin and M. Morisset

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 37-56

Abstract : The Canadian program of milk supply control was instituted nearly twenty years ago. Since then, it has survived several crises (dairy surpluses and cuts in quotas, opposition between provinces about the sharing of the national quota, criticism from free-market economists). Thus it has proved its ability to make the industry work smoothly, at a reasonable budget cost (which has even decreased in real terms). In the long run, a supply/demand equilibrium has been achieved, and the industry has continued being restructured. At the present time, this restructuring mainly relies on a quota market. Over the last few years, prices on this market have risen so much that they jeopardize takeovers on dairy farms. The level of quota prices is the Achille's heel of the Canadian milk supply regulation system.

Key-words : Canada, supply control, milk production, agricultural policy, quota market.

Une industrie sous quotas : la sidérurgie européenne
[The quota regime on the European iron and steel industry]

J.-P. Laurencin

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 57-76

Abstract : Since october 1980, the European Commission has been running a policy of quotas in the iron and steel industry. Initially, this anti-crisis policy had been conceived as strictly provisional. But it happened to be regularly renewed. This durability is being questioned, whatever the different measures taken both to relax it and to reduce the field submitted to the quotas system. In fact, this policy is an answer to the persistant necessity or restructuring the iron and steel industry at the Community level. Furthermore, it contributes to create a compromise about the rules and responsabilities of this restructuring.

Key-words : Europe, iron and steel industry, EEC, quota policy.

Une application nationale de la politique communautaire : les choix britanniques
[An application of the EC policy : Britain's choices]

A. Burrell

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 77-99

Abstract : In the United Kingdom, the national regulation of dairy quotas has been based on two specific features : firstly, it has been able to use the five existing Milk Marketing Boards as collecting units inside which the perequation of under - and over - production is calculated ; secondly, it rapidly instituted an open quota market. This market efficiently competes with the public "Outgoers Scheme". More recently, it has still been reinforced by developing a system of quotas renting. Thus, in this country, a structural change can take place even under a quota system. The article gives a detailed analysis of the evolution of the structures, the response of farmers to quotas, and the way they have adjusted to the new constraints.

Key-words : United-Kingdom, Milk Marketing Boards, quota regulation, quota leasing, quota market.

Les producteurs allemands face à la restriction de offre
[The German dairy farmers are facing a supply restraint]

J. Zeddies and B. Heim

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 101-115

Abstract : The decrease in deliveries which the EEC imposed upon the German dairy industry was severe, yet it was somehow alleviated by their national regulation. The article describes the way the farmers adjusted their production system to the new constraints. It gives an evaluation of different possible solutions : a decrease in feed purchase and in the number of cows has been the easiest way to respect the regulation. The programs of subsidies for outgoers have not been very successful because of a weak response from the farmers. But Germany has instituted, from the beginning, a system of renting quotas with agricultural land : renting additionnal quotas can still be a way of growth and is the best alternative for efficient dairy farms. Other alternatives, mainly in bovine production, have a low profitability. The German dairy industry has been imposed further decreases of deliveries since 1987. The authors give the results of a model which shows that efficient adjustments at the farm level should include a further growth of productivity and yields, a closer attention to components of milk, and a careful management of feed and feed costs.

Key-words : GFR, EEC, dairy industry, delivery restraint, dairy farming, quota leasing.

La première campagne laitière sous quotas dans deux régions françaises
[A first year under quotas in two French areas]

J.-P. Butault, B. Desbrosses, D. Hairy and D. Perraud

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 117-140

Abstract : This paper is based on an inquiry into dairy farms and milk processing plants located in Western and Eastern areas of France. Its purpose is to analyse the implementation of the quota system during the first dairy year. The authors consider successively the systems of dairy production, and their evolution just before the introduction of quotas ; the structural effect of the national outgoers scheme and the characteristics of those who have taken advantage of it ; the methods used to determine milk producers and buyers quotas ; the ways in which milk producers have tried to adapt to their quotas. They show that farmers generally opted for cautions adjustments, which did not alter their systems of production : quiring milk to calves, slaughtering some cows, reducing feed purchases. Restructuring milk production has only just begun.

Key-words : France, milk, systems of production, quotas.

S'adapter aux quotas : une revue des conseils, des pratiques et des analyses
[Adapting to quotas : a review of advices, practices and analyses review]

B. Desbrosses and D. Hairy

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 141-153

Abstract : With quotas, the growth of milk deliveries can no longer by itself improve dairy farmers' incomes. That is why farmer' unions, research institutes and dairy processors have looked for alternative solutions, in order to increase or maintain dairy farmers'incomes. This paper tries to compare advices given by different authors and institutions with actual producers adjustments. Most generally, quotas don't affect the principles of an intensification of milk production. High yields are still the best way of improving labour efficiency ; for the same level of milk deliveries, intensification enables a part of the labour force and of the land to be used in order to develop other activities. Yet, a development of alternative production is slowed down by their low returns and by the agricultural markets uncertainty.

Key-words : milk, adjustments to quotas.

De la nature juridique des quotas et de leurs transferts
[Juridical nature of dairy quotas and quota transactions]

C. de Crisenoy

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 155-177

Abstract : A quota allocation to a producer gives a merchandizing right rather than a property one. Quota transactions among producers cannot work apart from land transfers. Besides, since July 1987, a purchaser may not automatically get any benefit from a quota which can be wholly or partly added to the national reserve. By finding a quota to a land, the EC regulation intended to prevent any quota purchase ; meanwhile that was already enforce by French laws. However, since October 1987, as long as temporary transfers are authorized by members States, a leasing quota market might soon develop in France.

Key-words : France, EC regulation, quota transfer, land purchase.

Peut-on se passer d'un marché des quotas ?
[Voiding a quota market, how long ?]

D.-Mercier Gouin

In: Cahiers d'Economie et Sociologie Rurales, n° 7, 2nd term 1988, pp 179-191

Abstract : The purpose of this article is to analyze the economic forces which lead to a quota market, especially in the French case. Its points out the potential demand of quotas which results from the past growth of the dairy farms, the trends of technical progress, and even an open policy of "restructuring" the sector. After an initial success, current programs of subsidies for farmers giving up the dairy production become less and less efficient. The French structures of production tend to be progressively frozen. Similar attempts to forbid monetary exchanges of quotas have taken place in Canada, especially in Manitoba. The administrative regulation of quota transfers was unable to prevent a market to develop firstly under cover, then openly by an adjustment of the regulation. The article concludes that, as a "right to produce", the quota has a value. Denying it can only lead to bidden and chaotic forms of market. A very reluctant position on this matter, like the French one, could become more and more difficult to sustain.

Key-words : France, Canada, EC regulation, quota market.