THE CAP AND THE AUSTRIAN AGRICULTURAL SECTOR: IMPACTS OF POSSIBLE FUTURE MILK MARKET REGULATIONS

The European milk market is regulated by a quota system, which is limited by March 2015 for the time being. Using Austrian FADN data and applying a mathematical programming model, the impact of the CAP reform on Austrian farms with milk quota endowments as well as the impact of future milk market regulations after 2015 will be analysed. Possible options include either a continuation of the quota system or its abolishment. The model simulations show that in the scenario referring to 2008 most farms are better off due to the Austrian implementation of the CAP reform compared to a pre-reform situation. Whether farms are better off with or without a milk quota system in 2015 depends on the assumed level of the milk price. However, smaller farms are, on average, better off without a quota regulation