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Abstract
The European milk market is regulated by a quota system, which is limited by March 2015 for the time
being. Using Austrian FADN data and applying a mathematical programming model, the impact of
the CAP reform on Austrian farms with milk quota endowments as well as the impact of future milk
market regulations after 2015 will be analysed. Possible options include either a continuation of the
quota system or its abolishment. The model simulations show that in the scenario referring to 2008
most farms are better off due to the Austrian implementation of the CAP reform compared to a pre-reform
situation. Whether farms are better off with or without a milk quota system in 2015 depends on
the assumed level of the milk price. However, smaller farms are, on average, better off without a quota
regulation.