New Medit, vol 16, n.1, (March 2017), pp. 2-10
Jel classification: Q12, Q13, Q18
One of the aims of the dairy policy is to promote growth in domestic supply, production and collection, by directly subsidizing farmers through grants and bonus system. This article’s objective is to assess the role of this aid on the income of dairy farmers. After characterizing the farming systems used in the survey sample, we estimate the farm income. An analysis of the weight of premium production within the total income enables us to see if its amount offsets the continuing decline in the real price of raw milk. We use the same method to analyze imported raw material. Will the reduction in public support and its virtual uniformity further deteriorate the already severely weakened financial situation of dairy farms?
dairy policy, production bonuses, price volatility, dairy income, livestock profitability