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Milk Farmers' Risk Attitudes: Influence of the Dairy Processing Company AgEcon
Belhenniche, Geoffroy; Duvaleix-Treguer, Sabine; Cordier, Jean.
European market deregulation is destabilizing the economic environment of French farmers leading to an increase in market risks. In the dairy sector, the 2003 CAP reform has lead to major changes (removal of export subsidies and increase in the European milk quota). The dairy supply chain is now coping with higher production and price risks. The dairy supply chain is thinking of new management tools in order to both maintain stability in dairy farm income and secure supply to industrial facilities. One solution may be to strengthen marketing contracts. In this perspective, the knowledge of dairy farmers' risk attitudes is necessary. The goal of this paper is to provide empirical insight into: dairy farmers‘ perceptions of risk and risk management, and the...
Tipo: Book Palavras-chave: Market Risk; Farmers' risk perceptions; Expected utility framework; Risk preference elicitation; Dairy Sector; Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/58711
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The Effects of Different Political Schemes on the Willingness to Invest, Firm Profitability and Economic Efficiency in the Dairy Sector - An Agent-Based Real Options Approach- AgEcon
Feil, Jan-Henning; Musshoff, Oliver; Balmann, Alfons.
In recent years, the dairy sector has been exposed to strong changes in general conditions and extreme fluctuations in milk prices. Farmers and lobbyists have therefore asked politicians for additional market regulation. In this paper an agent-based real options market model is developed, which allows the analysis of the effects of different political schemes on the willingness to invest, firm profitability and economic efficiency in the dairy sector. The model results show that political schemes generally increase the willingness to invest in competitive markets under consideration of real options effects. However, they do not offer any substantial financial benefits to the producers and can cause a significant reduction in welfare. Furthermore, the...
Tipo: Conference Paper or Presentation Palavras-chave: Real Options; Competition; Policy Impact Analysis; Dairy Sector; Agricultural and Food Policy; D81; Q12; Q18.
Ano: 2011 URL: http://purl.umn.edu/100039
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