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The quota system as a means of controlling the supply of milk



The quota system as a means of controlling the supply of milk



Agrarwirtschaft, Hannover., Hannover 18(4): 127-33



Arguments are advanced to show the inadequacy of quotas in the present situation: (1) measures to prevent abuse are bound to be unrealistic; (2) although milk supplies to central dairies can be controlled this does not mean that the supply of dairy products can be matched to consumer demand since farmers can undermine planning by increasing farm gate sales; (3) if so-called price differentation is achieved by deficiency payments this would destroy any incentive to productivity at the dairies.

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