| The reform of European Common Agricultural Policy (CAP) in 2003 has resulted in substantial changes to the attribution of subsidies to dairy farmers. Moreover, dairy farmers are in also facing an unprecedented situation on the markets with the soaring prices of agricultural raw materials: they sell their products at a higher price (milk, meat and cereals), but must also cope with the increasing prices of concentrates. In this paper1, we discuss cross effects, on the productive strategy of French dairy farms, of the Luxemburg Agreement and the prices variations. A model based on mathematical programming has been privileged to determine how dairy farmers might re-evaluate their systems to identify optimal production plan. While respecting the principle of... |
