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Home arrow Economics arrow Disaggregated impacts of CAP reforms : proceedings of an OECD workshop.

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Policy effects on separate agricultural sector commodity production

Having looked at the aggregated livestock sector, it is worthwhile to investigate the policy influence upon separate parts, and we do so with illustrations from the beef and dairy sectors. In Figure 7.6, we clearly see the impact of the loss of board protection in the case of liberalisation, in which there would be a massive displacement of beef sourcing from outside of the European Union. In this case, RD measures would be the only real source of support to beef production, with some encouragement to extensive grazing.

Figure 7.6. Decomposition of EU27 beef production changes

2007-20

Source: LEITAP results

With regard to the dairy sector, Figure 7.7 shows that general macro-effects very much outweigh the impact of liberalisation. In fact, the overall demand and added value for dairy products is high not only within the European Union, but around the world with the growth of GDP. Other policy measures have a limited influence on the prospects of the dairy sector under any scenario, demonstrating the EU dairy sector is inherently competitive enough to withstand the vicissitudes of policy changes, even in terms of easier access of foreign producers to the EU market.

Figure 7.7. Decomposition of EU dairy production changes

2007-20

Source: LEITAP results

 
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