LIBERALIZATION OF THE MILK QUOTA TRADE - CONSEQUENCES FOR BAVARIAN DAIRY FARMING

The liberalization of the milk quota trade has improved the growth pos sibilities of dairy farms. The increase of milk production by buying q uotas occurs less costly by higher milk performance or by larger herds in existing cow-sheds than by larger herds in new built cow-sheds. Fu rthermore the level of milk performance, the development oi milk price s and the governmental support will influence the economical acceptabl e purchase price of milk quotas. Using existing capacities milk quota prices are still profitable until 1,50 DM/kg milk, while with new buil t cow-sheds the acceptable milk quota price have to be under 1,00 DM/k g milk. In Bavaria a lot of new cow sheds are planned. Here is to noti ce a trend of low cost buildings. In the future more milk quotas will be released because of the structural changes. This will probably lead to a noticable decrease of quota prices.