Internal and contextual drivers of dairy restructuring: evidence from French mountainous areas and post‐quota prospects

Abstract

International audienceThe end of the milk quota system in Europe has resulted in substantial structural changes to the dairy industry, calling its future into question, especially in mountainous areas. This study analyzes the internal and contextual factors that influence dairy restructuring in French mountainous areas. Three complementary logit models are used to specify farmer decisions (e.g., dairy production exit, stability, and growth). Original and exhaustive geo-located administrative datasets are combined to create a farm longitudinal dataset and characterize farm-restructuring patterns on a fine geographical scale. Farm size, corporate legal status, and specialization are positively associated with farm growth. Viable diversification strategies through either farm processing or agro-environmental scheme contracting are also highlighted. Farm sustainability is supported by the economic success of the local industry and the propensity to adopt extensive practices. With respect to public policy, dairy policy appears to have the strongest impact. Thus, the liberalization of dairy policy threatens the future of dairy farming, particularly in areas with low milk density and no production under labels. This work calls for a policy that promotes the collective dimension of dairy farm performance. The current rural development policy alone may be insufficient to support farms’ long-term sustainability

Why do farmers not convert to organic farming? Modeling conversion to organic farming as a major change

“…In fact, farmers can increase/decrease their level of production by expanding/selling milking herd, etc. According to Barthélemy and David (), Dervillé, Allaire, Maigné, and Cahuzac, , and Gouin, (), levels of production can be either transferred directly between farmers via land sales or exchanged through a departmental commission, either with or without compensatory payments. Over the last 20 years, farms have increased their overall level of production, as shown by Depeyrot () for French dairy farms.…”

Responding to change: Farming system resilience in a liberalized and volatile European dairy market

“…In response to market liberalization the dairy market has become highly volatile in contrast to previously stable dairy market conditions (Veerman et al, 2016). Price stabilization was an important feature of the European dairy market assuring the viability of small-scale farming systems in marginal areas that may not have endured in the absence of market protection (Dervillé et al, 2017;Dillon et al, 2005;McDonald and Macken-Walsh, 2016). European farming systems were adjusted to these market conditions and they were therefore challenged when this protection was abolished.…”

Development of the Concept of Agroecology in Europe: A Review

“…It is documented that in the French mountainous areas there are internal and contextual factors that influence the restructuring of dairy production. Among these factors are the size of the farm, the corporate legal status and the level of specialization, which are positively associated with farm growth rate, also highlighting viable diversification strategies through agricultural processing or the contracting of agro-environmental schemes [53]. Another aspect referring to agroecological practices was analyzed at a mountainous site in France, finding a potential contribution of livestock farms in the management of the invasion of shrubs, by implementing a variety of appropriate management and feeding practices of livestock and soil conservation [54].…”

“…In the case of Sardinia, Italy, inadequate implementation of agricultural policies led to the clearing of the macchia mediterranea (a type of shrubland) together with the creation of new pastures, which has been an important factor in land degradation, intensifying tillage and water erosion [111]. In France, the milk policy threatens the future of the production, particularly in areas with a low density of milk and without production, therefore, the current policy of rural development could be insufficient to support the long-term sustainability of the farms [53]. In Denmark, Finland, Iceland, Norway and Sweden, factors such as mechanization and the Common Agricultural Policy of the European Union have affected the composition, diversity and abundance of the flora of weeds by the increased levels of fertilization and the application of herbicides over time [112].…”