AUTHOR(S): 

Bruna Márcia Machado Moraes, Reisoli Bender Filho

TITLE

International Dairy Trade: Analysis of stimulus policies for milk production in Brazil

KEYWORDS

Brazilian dairy sector; production stimulus policies; foreign trade; imports; exports; prices

ABSTRACT

The recent stimulus programs for the dairy sector seek to increase the domestic production of milk and dairy products. Based on this, we sought to analyze if these policies have influenced on the Brazilian foreign position, as a net importer, in the international trade of the dairy sector. Two scenarios were simulated, each consisting of two proposals; The former assumed a 10% and 20% subsidy increase for milk and milk products, whereas the latter assumed, a 10% and 20% tax reduction on the use of primary factors in the production of milk and milk products. In order to simulate such changes, we carried out the General Equilibrium Program (PAEG) for the Brazilian Economy. The results indicated that an increase in subsidy for the production of dairy products in Brazil would result in more significant variations in the foreign prices and in the levels of imports and exports than the variations in the domestic tax exemption

Cite this paper

Bruna Márcia Machado Moraes, Reisoli Bender Filho. (2017) International Dairy Trade: Analysis of stimulus policies for milk production in Brazil. Food and Nutrition Science - An International Journal, 2, 11-25