Introduction of milk quotas in Slovenia: Possibilities, accompanying measures and expected outcomes

Abstract

Some approaches that seem to be appropriate for milk quota introduction in Slovenia are presented. Empirical work is based on detailed analysis of Slovenian milk production structure. Special emphasis is given to small producers not having real prospects to sustain in milk production. Budgetary costs of different accompanying measures including early retirement scheme, voluntary supply restraint scheme, special promotions for disadvantaged areas (compensatory allowances, environmental programmes, extensification premiums) are projected under basic assumption of not reduced area farmed. Results emphasise necessity of accompanying measures unless rapid and significant stagnation of incomes ofpeople currently involved in dairy farming is permitted.