The Future of Irish Dairy Farming – The Implications of Agenda 2000 and a Booming Economy
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The future of dairy farming in Ireland is examined. The effects of a strong macroeconomy,
Agenda 2000 and domestic policy on milk quota transfer are analysed using
linear programming and Markov Chain analysis. Results show that all farms are
subjected to a price-cost squeeze. Smaller dairy farms are pushed and pulled out of
farming. Larger farms survive by expanding operations but do not enjoy the increases
in income realised elsewhere in the economy.