Competitiveness of the EU dairy industry

anilact.com

Competitiveness of the EU dairy industry

8

Figure 1 Overall competitiveness of the dairy sector

Dairy

Growth of GVA in food

industry

Growth of Balassa index

World market share growth

Growth of GVA/worker

Growth of GVA

Overall

EU

weak average strong

CA

CA

CA

AU

CA

CA

It is unlikely that this situation will improve much in the future. Abolition of

quotas would increase the volume of production as the sector is then less restricted

in supplying of raw material. However, full liberalisation would make

some dairy farming uncompetitive and the production volume would decrease.

Australia and New Zealand would profit most from liberalisation. Employment in

the sector would fall with about 3%. But it would generate welfare - and the

analysis shows that the size of the sector is also very dependent on total GDP

and the size of the population. Improved productivity at farm or industry level

helps to improve the competitive position.

EU

AU

AU

EU

AU

AU

AU

CA

EU

EU

US

NZ

EU

US

US

US

US

NZ

US

NZ

More magazines by this user
Similar magazines