Following the abolition of quotas and the initial price decrease, the farmer is encouraged to produce more in order to maintain a high income. He therefore opts for an “intensive” feeding diet which allows for a more significant dairy production per cow. Milk at a price of 0.3€/L allows him to have an income of 49000 €. This income is lower than the one obtained in the quotas scenario (56600 €).
Once the price goes down again, the farmer cannot maintain his production increase strategy to compensate for the decrase in price for he does not have enough grassland available to feed his animals. His income therefore goes down to 36900 €.
Under optimum conditions :
| Price of milk | 0.35 | 0.30 | 0.27 |
| Quota | 300000 | ||
| Dairy cow / « intensive » diet | 0 | 53.846 | 53.846 |
| Heifer / « intensive » diet | 0 | 16.154 | 16.154 |
| Calf (sold) / « intensive » diet | 0 | 32.308 | 32.308 |
| Dairy cow / « grass-based » diet | 42.857 | 2.564 | 2.564 |
| Heifer / « grass-based » diet | 12.857 | 0.769 | 0.769 |
| Calf (sold) / « grass-based » diet | 25.714 | 1.538 | 1.538 |
| Milk production | 300000 L | 402410 L | 402410 L |
| Wheat | 26.104 ha | 19.977 ha | 19.977 ha |
| Maize | 3.896 ha | 10.023 ha | 10.023 ha |
| Permanent grassland | 19.286 ha | 20 ha | 20 ha |
| Income of the farmer | 56629 | 48996 | 36924 |
The solution model is as follows : modelEco_dairyFarm_2.gms
