TRADE EFFECTS OF DAIRY PRICING ARRANGEMENTS / доклад на 25 конференции IAAE, Reshaping Agriculture’s Contribution to Society, International Convention Centre, Durban, South Africa, 16-23 August 2003
Опубликовано на портале: 24-12-2003
Durban, 2003
Тематический раздел:
Milk producers in virtually every OECD country, and in many non-OECD countries as
well, benefit from
government interventions. Indeed, government support and protection for milk producers
is more widespread
than for any of the other commodities for which the OECD calculates producer subsidy
equivalents. The
purpose of the analysis reported in this paper was to investigate the relative market
effects of these two
varieties of government intervention in milk pricing: 1) interventions through trade
measures applied to dairy
products and 2) discriminatory pricing arrangements. Which kind of policy creates
‘dollar-for-dollar’ the
greater effects? This paper shows the answer to that question is – it depends.
Neither economic theory by
itself, nor economic theory combined with ‘plausible’ ranges of numerical
values for key parameters is
enough to say definitely one way or another. In some plausibly real-life situations
domestic milk pricing
arrangements can be, at the margin, more distorting than explicit trade measures.
The key determining
parameters include the usual suspects – the relative elasticities of fluid
and manufacturing milk demand, as
well as initial price gap between fluid and manufacturing milk provided by various
measures and the
proportion of domestic milk production used to manufacture tradable dairy products.
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