Analysis of Technical and Policy Changes for Belgian Dairy Farms Using an Estimated Augmented SGM Cost Function

De Blander, Rembert;Henry de Frahan, Bruno
(2011) XIIIth European Association of Agricultural Economists (EAAE) Congress, Change and Uncertainty Challenges for Agriculture — Location: Zurich

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  • De Blander, RembertUCLouvain
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  • Henry de Frahan, BrunoUCLouvain
    Author
Abstract
This paper provides some evidence on the evolution of marginal and average costs of dairy farms in Belgium between 1990 and 2007. It investigates the effect of the 2003 Mid-Term Review by adding time trends and linear splines to an augmented multi-input multi-output symmetric generalized McFadden cost function and estimating it using a panel of Belgian dairy farms. Existence of size, scale and scope economies in the dairy sub-sector is also examined. This exercise increases our understanding of dairy farm responses to reforms and helps envision the possible effects of ending the milk quota system as it is now planned for 2015.
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De Blander, R., & Henry de Frahan, B. (2011). Analysis of Technical and Policy Changes for Belgian Dairy Farms Using an Estimated Augmented SGM Cost Function. XIIIth European Association of Agricultural Economists (EAAE) Congress, Change and Uncertainty Challenges for Agriculture, Zurich. https://hdl.handle.net/2078.5/225958