INCOME AND WELFARE INDICATORS OF SLOVENIAN LIVESTOCK PRODUCTION IN VIEW OF FUTURE ACCESION TO THE EU

• Main Authors: Stane Kavčič, Emil Erjavec
• Format: Article
• Language: English
• Published: Faculty of Agrobitechnical Sciences Osijek 2000-06-01
• Series: Poljoprivreda
• Subjects: livestock production; income; economic welfare; agricultural policy; modelling; Slovenia
• Online Access: http://poljoprivreda.pfos.hr/upload/publications/7_KAVCIC.pdf

Slovenian livestock production is facing different agricultural policy and economic environment as is the case in EU. Despite modest reforms of national agricultural policy it is still incomparable with common market organisations of CAP. Different levels of market-price support for major livestock commodities is another aggravating circumstance for efficient adjustment. Therefore different policy measures have to be taken into account simultaneously for policy relevant analysis (income effects, welfare efficiency). Applying APAS-PAM agricultural sector model for Slovenian agriculture the most important income and welfare effects of Slovenian EU accession on producers, consumers and taxpayers as well as net welfare effects for baseline and three accession scenarios have been simulated. Results obtained show potential improvement of incomes in dairy farming and cattle fattening only for most optimistic accession scenario (complete adoption of Agenda 2000 CAP), while deterioration is foreseen in pig and poultry farming irrespective of accession conditions. Producer surplus indicates similar trends, while consumers are expected to be beneficiaries due to lower market-price support. Main part of producer income support burden will be transferred to taxpayers. Irrespective of accession scenario net welfare effects for pork and poultry are favourable, while opposite could happen in milk and beef sectors.