Record Details

Production Rigidity, Input Lumpiness, Efficiency, and the Technological Hurdle of Quebec Dairy Farms

OAR@ICRISAT

View Archive Info
 
 
Field Value
 
Relation http://oar.icrisat.org/10338/
http://dx.doi.org/10.1111/cjag.12156
10.1111/cjag.12156
 
Title Production Rigidity, Input Lumpiness, Efficiency, and the Technological Hurdle of Quebec Dairy Farms
 
Creator Larue, B
Singbo, A
Pouliot, S
 
Subject Others
 
Description In this paper, we argue that (bilateral) auctions of production quotas induced a rapid convergence in
dairy farm size within provinces in the early years of Canada’s supply management policy and that this
effect was stronger in provinces with a larger number of dairy farms. This contributed to the smallness
and homogeneity of Quebec dairy farms relative to dairy farms in Western Canada. In Quebec, most
dairy farms still rely on the tie-stall milking system, while dairy farms in Western provinces are
larger and use larger-scale, lower-cost technologies. Regulations on Quebec’s quota exchange have
slowed down the pace at which a farm can acquire production quota, exacerbating the effects of
input lumpiness, on dairy farm efficiency. Low trading on the production exchange severely constrains
production adjustments, making, scale, allocative, and technical inefficiencies more persistent and
investment in herd expansion unprofitable.
 
Publisher Wiley
 
Date 2017-10-25
 
Type Article
PeerReviewed
 
Format application/pdf
 
Language en
 
Rights —
 
Identifier http://oar.icrisat.org/10338/1/cjag12156.pdf
Larue, B and Singbo, A and Pouliot, S (2017) Production Rigidity, Input Lumpiness, Efficiency, and the Technological Hurdle of Quebec Dairy Farms. Canadian Journal of Agricultural Economics, 65 (4). pp. 613-641. ISSN 00083976