American Journal of Agricultural EconomicsVolume 72, Issue 3 p. 840-841 Books Reviewed Petit, Michael, Michele de Benedictis, Denis Britton, Martijn de Groot, Wilhelm Henrichsmeyer, and Francesco Lechi. Agricultural Policy Formation in the European Community: The Birth of Milk Quotas and CAP Reform. Hollingham, Michael A., and Richard W. Howarth. British Milk Marketing and the Common Agricultural Policy: The Origins of Confusion and Crisis. Burrell, Alison, ed. Milk Quotas in the European Community Robert E. Jacobson, Robert E. Jacobson Ohio State UniversitySearch for more papers by this author Robert E. Jacobson, Robert E. Jacobson Ohio State UniversitySearch for more papers by this author First published: 01 August 1990 https://doi.org/10.2307/1243077AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Volume72, Issue3August 1990Pages 840-841 RelatedInformation

Supply management can be defined as a national program authorized by federal legislation designed to use production control regulations rather than price to match the supply of milk with the demand for milk. A supply management program may be voluntary or mandatory. Voluntary supply management carries an incentive to participate, but mandatory supply management carries a penalty for failure to comply. The comprehensive purpose of supply management is to return to milk producers high enough milk prices to permit average dairy farmers to enjoy a satisfactory standard of living and avoid excess production. Historically, price has been used to balance supply and demand, but the accelerating technological gains in milk production are generating increasing concerns as to whether the rapid restructuring of the dairy farm sector due to supply driven prices is an acceptable consequence of a market-oriented dairy policy. Alternative supply management programs continue to be defined. It is evident from the Canadian experience that production controls can balance supply and demand while achieving significantly higher prices for quota milk. However, negative impacts on demand and farm structure have accompanied the program.

Supply management can be defined as a national program authorized by federal legislation designed to use production control regulations rather than price to match the supply of milk with the demand for milk. A supply management program may be voluntary or mandatory. Voluntary supply management carries an incentive to participate, but mandatory supply management carries a penalty for failure to comply. The comprehensive purpose of supply management is to return to milk producers high enough milk prices to permit average dairy farmers to enjoy a satisfactory standard of living and avoid excess production. Historically, price has been used to balance supply and demand, but the accelerating technological gains in milk production are generating increasing concerns as to whether the rapid re- structuring of the dairy farm sector due to supply driven prices is an acceptable consequence of a market-oriented dairy policy. Alternative supply management programs continue to be defined. It is evident from the Canadian experience that production controls can balance supply and demand while achieving significantly higher prices for quota milk. However, negative impacts on demand and farm structure have accompanied the program.