Dairy Farming in Liberalized Economy and Production Quota Allotment.

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1) Market oriented buy-and-sell allotment of milk quota in Western Europe accelerated the production concentration on efficient farms and low productivity farms' dropout. As a result, the average production cost of milk was reduced. The same structural changes are preconceived in Japan if such method is generated.2) The Field interviews were executed in Gunma, a drinking milk supply region to metropolitan area, and the remote supply region, Hokkaido. Individual decision based buy-and-sell of milk quota is predominant in Gunma and community consensus responsive in Hokkaido. However, in both regions, informal mutual dependence among dairymen is an important factor for quota transaction. In other words, reality was community reliance based transaction. Secon, it turned out that short-term lease is an effective way as a transitional form for the transaction of milk quota. In addition, buy-and-sell quota tends to be more popular in the regions where Agr.Coops.are playing rule for the initiation and promotion of this.3) Geographical expansion of marketing unit (so-called the Regional Blocking) is one of rational supply side marketing strategies in order to improve supply control management of Agr.Coops.However, the rule of national federation in nationwide supply control is not so effective enough as was expected since the organization and activities of the federation are of the vertical structure.4) Present cooperative milk marketing, in which usage of row milk are restricted and farm received price is pooled, should be improved. On the other hand, regional compensation for quota allotment, forward contract based production and marketing should be introduced. Rerganization prevailing cooperatives to Milk marketing Board is also suggested. Thus, this study envisaged "Japanese type milk quota transaciton system"