Phosphate Production Reduction Decree of the Netherlands : impact on markets, environment and dairy farm structure

Jongeneel, R.A.; Daatselaar, C.H.G.; Leeuwen, Myrna van; Silvis, H.J.

doi:10.18174/404867

Cited by 6 publications

(6 citation statements)

References 3 publications

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“…As a result of the investments in the expansion of production, the total milk production increased by 26.6% between 200826.6% between and 201726.6% between (CBS, 2018. Worse, this increase in milk production caused an exceedance of the enforced agricultural phosphate production ceiling (Jongeneel et al, 2017). By mid-2015, in response to the observed increase in phosphate emissions, the Dutch government announced the intention to introduce a phosphate right system, without further specification of how this system would be implemented (European Commission, 2017).…”

Section: Introductionmentioning

confidence: 99%

Anticipate, wait or don't invest? The strategic net present value approach to study expansion decisions under policy uncertainty

Yanore

Sok

2022

Agribusiness

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Dutch dairy farmers used different investment strategies in their production capacity in the periods around the abolishment of the European Union milk quota. Some farmers anticipated and expanded their production, others waited till expected policies were implemented or did not change their production. We develop a theoretical framework that integrates investment strategies—anticipating, waiting, or not investing—in the presence of policy uncertainty. We provide a numerical illustration of the framework to a typical Dutch dairy farm considering to expand the milk production. Results show that farmers would anticipate when they expect that the right system will be implemented with delay and will have low financial consequences. A low risk aversion reinforces the adoption of the anticipation strategy. The implications for policy and practice are discussed [EconLit Citatons: D22, Q00, Q18].

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Section: Introductionmentioning

confidence: 99%

Anticipate, wait or don't invest? The strategic net present value approach to study expansion decisions under policy uncertainty

Yanore

Sok

2022

Agribusiness

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“…The management factors can be partly triggered by policy alterations ( 61 ). During the study period, the milk quota system was abolished in 2015, and phosphate regulation was implemented in 2017 ( 62 – 64 ). As a consequence, different study herds may have taken different strategic management decisions, thereby affecting gross margin ( 61 , 65 ).…”

Section: Discussionmentioning

confidence: 99%

Estimating the Effect of a Bovine Viral Diarrhea Virus Control Program: An Empirical Study on the Performance of Dutch Dairy Herds

Yue

Voort

et al. 2022

Front. Vet. Sci.

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More and more European countries have implemented a bovine viral diarrhea virus (BVDV) control program. The economic effects of such programs have been evaluated in simulations, but empirical studies are lacking, especially in the final stage of the program. We investigated the economic (gross margin) and production effects (milk yield, somatic cell count, and calving interval) of the herds obtaining BVDV-free certification based on longitudinal annual accounting and herd performance data from Dutch dairy herds between 2014 and 2019, the final stages of the Dutch national BVDV-free program. This study was designed as a case-control study: two types of case herds were defined for two analyses. The case herds in the first analysis are herds where the BVDV status changed from “BVDV not free” to “BVDV free” during the study period. The not-free status refers to a herd that participated in the BVDV-free program but had not yet obtained the BVDV-free certification. In the second analysis, the case herds started participating in the Dutch BVDV-free program during the study period and obtained the BVDV-free certification. Control herds in both analyses were BVDV-free during the entire study period. Potential bias between the covariates of the two herd groups was reduced by matching case and control herds using the propensity score matching method. To compare the differences between case and control herds before and after BVDV-free certification, we used the time-varying Difference-in-Differences estimation (DID) methodology. The results indicate that there was no significant change in milk yield, somatic cell count, calving interval, and gross margin upon BVDV-free certification. There are several possible explanations for the non-significant effects observed in our study, such as the final stage of the BVDV control program, not knowing the true BVDV infection situation in case herds and not knowing if control measures were implemented in case herds prior to participating in the BVDV-free program. In our study, the effects of BVDV-free certification might have been underestimated, given that the Dutch BVDV control program became mandatory during the study period, and some of the case herds might have never experienced any BVDV infection. The results of this study suggest that in the final stage of the BVDV control program, the program may no longer have a clear benefit to the herd performance of participating dairy herds. When designing national programs to eradicate BVDV, it is therefore important to include incentives for such farms to motivate them to join the program.

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“…As Table 1 shows the environmental challenge has been addressed by a targeted environmental policy response (Phosphate Production Reduction Decree; see Jongeneel et al (2017) for further details).…”

Section: Key Challenges Facing Dutch Dairy and Structural Imbalancementioning

confidence: 99%

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

Jongeneel

Silvis

Daatselaar

et al. 2017

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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.

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Phosphate Production Reduction Decree of the Netherlands : impact on markets, environment and dairy farm structure

Cited by 6 publications

References 3 publications

Anticipate, wait or don't invest? The strategic net present value approach to study expansion decisions under policy uncertainty

Anticipate, wait or don't invest? The strategic net present value approach to study expansion decisions under policy uncertainty

Estimating the Effect of a Bovine Viral Diarrhea Virus Control Program: An Empirical Study on the Performance of Dutch Dairy Herds

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

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