PRODUCTION CHOICE IN THE ENGLAND AND WALES DAIRY SECTOR

This paper seeks to develop the understanding of the ways in which factors other than price influence the production decisions of dairy farmers. A theoretical model based on a profit function is used to emphasise the way in which changes in the farm's technological environment will influence its production choices. The theoretical model is used as the basis of an empirical study of production choice in the England and Wales dairy sector. Elasticities and factor biases are reported.