Imperfect competition,border protection and consumer boycott: The future of the dairy industry in Israel |
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| Authors: | Dorothee Flaig Ofir Rubin Khalid Siddig |
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| Institution: | 1. Agricultural and Food Policy Group (420a), Universität Hohenheim, 70593 Stuttgart, Germany;2. Department of Public Policy and Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, P.O. Box 653, Beer-Sheva 84105, Israel |
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| Abstract: | Recent increases in prices of dairy products in Israel led to consumer unrest and boycotts against dairy producers during the summer of 2011. The Israeli dairy industry is highly distorted with production quotas and administered prices for raw milk, tariff rate quotas and an oligopoly in dairy processing. Since the issue of self-sufficiency and food security is at the top of Israel's national priorities, the future of the dairy industry is generating heated debate. Thus, we use a general equilibrium model to estimate the effects associated with particular alternative policies actually discussed to liberalize the Israeli dairy industry. |
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| Keywords: | Dairy Computable general equilibrium (CGE) model Imperfect competition Tariff rate quotas Israel Agricultural policy Trade policy |
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