eprintid: 10338
rev_number: 12
eprint_status: archive
userid: 1305
dir: disk0/00/01/03/38
datestamp: 2017-12-01 05:51:21
lastmod: 2017-12-01 05:51:21
status_changed: 2017-12-01 05:51:21
type: article
metadata_visibility: show
contact_email: Library-ICRISAT@CGIAR.ORG
creators_name: Larue, B
creators_name: Singbo, A
creators_name: Pouliot, S
icrisatcreators_name: Singbo, A
affiliation: Canada Research Chair in International Agri-food Trade, CREATE, Laval University (Quebec)
affiliation: ICRISAT (Bamako)
affiliation: Department of Economics, Iowa State University (Iowa)
country: Canada
country: Mali
country: USA
title: Production Rigidity, Input Lumpiness, Efficiency, and the Technological Hurdle of Quebec Dairy Farms
ispublished: pub
subjects: s2
divisions: CRPS1
full_text_status: public
keywords: Dairy farms, Canada, Dairy farm size, Supply management policy, Milk production
note: The authors wish to thank two anonymous reviewers and the editors for insightful comments and
suggestions. Funding from FQRSC-´equipe de recherche and from the Canada Research Chair
program is gratefully acknowledged.
abstract: 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.
date: 2017-10-25
date_type: published
publication: Canadian Journal of Agricultural Economics
volume: 65
number: 4
publisher: Wiley
pagerange: 613-641
id_number: 10.1111/cjag.12156
refereed: TRUE
issn: 00083976
official_url: http://dx.doi.org/10.1111/cjag.12156
related_url_url: https://scholar.google.co.in/scholar?hl=en&as_sdt=0%2C5&q=Production+Rigidity%2C+Input+Lumpiness%2C+Efficiency%2C+and+the+Technological+Hurdle+of+Quebec+Dairy+Farms&btnG=
related_url_type: pub
funders: FQRSC-´equipe de recherche and from the Canada Research Chair program
citation:   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     
document_url: http://oar.icrisat.org/10338/1/cjag12156.pdf