Background analysis for a Temporary Measure (State aid) aimed at restructuring the Dutch Dairy Sector

Abstract

MEMORANDUM 2017-054Jongeneel, Roel, Huib Silvis, Co Daatselaar and Walter van Everdingen, 2017 The crisis in the EU milk market has affected the Dutch dairy sector. In a response, the Dutch government is considering a state aid-funded Temporary Measure aimed at restructuring the sector.This study provides a background analysis for this measure. The macroeconomic situation of the dairy market and the impacts of the market conditions on the Dutch dairy farm sector are assessed. It concludes that the changes in markets and policies have negatively affected profitability and contributed to an imbalance in the structural change.