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How Milk Quotas and the CAP Affect GI Systems: The Case of Parmigiano Reggiano PDO

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  • Alberto Giannecchini,
  • Lisa Baldi,
  • Michele Donati,
  • Filippo Arfini
Alberto Giannecchini
University of Parma, Department of Economics and Management
Lisa Baldi
University of Parma, Department of Chemistry, Life Sciences and Environmental Sustainability
Michele Donati
University of Parma, Department of Chemistry, Life Sciences and Environmental Sustainability
DOI: https://doi.org/10.36253/bae-18285

Published 2025-12-14

Keywords

  • agent-based modeling,
  • Positive Mathematical Programing (PMP),
  • agricultural policy,
  • Geographical indications,
  • milk quota

How to Cite

Giannecchini, A., Baldi, L., Donati, M., & Arfini, F. (2025). How Milk Quotas and the CAP Affect GI Systems: The Case of Parmigiano Reggiano PDO. Bio-Based and Applied Economics. https://doi.org/10.36253/bae-18285

Copyright (c) 2023 Alberto Giannecchini, Lisa Baldi, Michele Donati, Filippo Arfini

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

Milk quota policies in the European Union have long shaped dairy production, but their transformation into a tool restricted to Geographical Indications (GIs) raises new concerns about their effects on GI agricultural and rural systems. After encompassing the historical reasons that led to the new policy framework this study assesses the economic, environmental, and social impacts of quotas management under the greening measures of the Common Agricultural Policy 2023-2030. This is carried out by applying an ex-ante analysis using the AGRISP model, which combines Positive Mathematical Programming with Agent-Based Modeling. The case study of the Parmigiano Reggiano PDO is considered. Simulation results show that, while quotas increase production volumes and efficiency and do not strongly hinder marginal activities, they worsen farmers’ profits and environmental outcomes compared to a no-quota scenario. This paper provides a comprehensive analysis of the current milk quota policy in a production context underexplored in recent literature.

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