This paper provides a quantitative assessment of the Me Sharry CAP reform proposal issued by the EC Commission in July 1991. Grain exports would be drastically reduced, feed demand for grains increase substantially, real incomes per head slightly decrease, but budget costs increase. The sensitivy of the increase in feed grain demand to various parameters is then emphasized, particularly to the magnitude of the price cut and to the taxation of imports of protein cakes and substitutes. Overall, the July 1991 proposal does not appear as a revolution but is certainly a large step in the right direction. Furthermore, it improves the EC negotiating position in the Urugay Round.
