Dairy policy impacts on Bangladesh & EU15 dairy farmers`livelihoods 11.Jan.2010

The historic low price of milk in 2009 has significantly affected million’s of dairy farmers’ livelihoods all over the world. The dairy policy played a significant role in lowering the milk price. In responding to this issue, IFCN has conducted case study on how this policy affect milk price and affect the rural livelihoods both in Bangladesh and German Typical dairy farmers.

Therefore, the aim of this paper is to describe the dynamics of the dairy markets. The impacts of reduction of national milk price on both Bangladesh and EU ‘dairy farmers’ livelihood is analysed. A special focus is given on policy instruments like tariffs and export subsides for dairy products. This project applies the methods developed by International Farm Comparison Network (IFCN). This method uses the concept of ‘Typical’ farms and utilizes the TIPI-CAL model developed by Hemme (2000).

The results show that the changes in export subsidy policy by EU decrease world milk price. Due to this, approximately 7 million people in Bangladesh and 0.45 million people in EU are suffering.

To download the study click here.