ABSTRACT

This chapter examines the systematic elements in US and European Community (E.C.) dairy policy choice, and outlines the influence of key domestic variables. It describes US and E.C. dairy policies as background to empirical research on dairy policy choice. The chapter identifies domestic dairy policy instruments for each region such as internal price supports, quotas and export subsidies. It explains policy choices for dairy, a key agricultural subsector in the United States and the E.C. The chapter also examines dairy policy choice functions for the United States and E.C. to find the systematic components behind US and E.C. dairy policy choices, compares the findings, and draws implications for US and E.C. dairy policies. It also examines the policy choice function for the subsidy rate for skim milk powder use in calf feed, which is the largest use of E.C. powder.