Could EU dairy quota removal favour some dairy production systems over others? The case of French dairy production systems

Our results confirm the findings of previous studies, i.e., quota removal causes an increase in milk production and a decrease in raw milk prices in the European Union. Market effects are similar regardless of the world demand scenario, but they are markedly higher in the high world demand scenario. Our results regarding the impacts of quota removal on the shares of different dairy production systems in France are new and original. We find that quota removal alone has limited impacts on the redistribution of production across dairy systems. Quota removal associated with increased world demand has stronger impacts, but the expected redistribution effects towards more efficient systems remain rather limited even then. Our results show that the very intensive maize system is the most responsive to changes in the production context.