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Abstract
Following model calculations
presented in this paper he removal of the EU
quota system will result in 21% more milk
production in the Netherlands. Large dairy
farms expand and achieve higher income levels
compared to a scenario with quota continuation,
as increasing scale of production and decrease of
quota costs outweigh price reductions and extra
manure disposal costs. Production in the
category of relatively small farms, however,
declines and farms in this category will leave
business. Sector income will only marginally fall
while production expansion will remain within
the limits of present environmental policies
related to manure and nutrient applications.