A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco
The dairy sector in Morocco is a sector that struggles to develop by facing several difficulties. Therefore, a significant gap has emerged between the main national producers and small farmers, while in the economy, the development of small economic actors presents an important lever of growth. If w...
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2021/9094551 |
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| _version_ | 1841524292594958336 |
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| author | Ali Labriji Youssef El Foutayeni Mostafa Rachik |
| author_facet | Ali Labriji Youssef El Foutayeni Mostafa Rachik |
| author_sort | Ali Labriji |
| collection | DOAJ |
| description | The dairy sector in Morocco is a sector that struggles to develop by facing several difficulties. Therefore, a significant gap has emerged between the main national producers and small farmers, while in the economy, the development of small economic actors presents an important lever of growth. If we assume that the consumer’s milk demand function is linear, that it depends only on the consumer’s price, and that production costs follow a decreasing return, and finally, by considering only two actors representing the different types of producers, we will show in this paper that a competitive production subsidy of 0.5 MAD can triple the market share of small farmers while being in a situation of Nash-Cournot’s equilibrium. In addition, the addition of a subsidy to production costs will reduce the price of milk and, thus, increase the annual milk consumption of Moroccans from 59 liters, which is below the world average consumption, to 94 liters annually, thus benefiting the consumer in addition to small farmers. |
| format | Article |
| id | doaj-art-a951306e10084876877d2529d61a7c2a |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-a951306e10084876877d2529d61a7c2a2025-02-03T07:23:27ZengWileyJournal of Applied Mathematics1110-757X1687-00422021-01-01202110.1155/2021/90945519094551A Subsidy Strategy to Boost the Activity of Small Milk Producers in MoroccoAli Labriji0Youssef El Foutayeni1Mostafa Rachik2Hassan II University of Casablanca, MoroccoHassan II University of Casablanca, MoroccoHassan II University of Casablanca, MoroccoThe dairy sector in Morocco is a sector that struggles to develop by facing several difficulties. Therefore, a significant gap has emerged between the main national producers and small farmers, while in the economy, the development of small economic actors presents an important lever of growth. If we assume that the consumer’s milk demand function is linear, that it depends only on the consumer’s price, and that production costs follow a decreasing return, and finally, by considering only two actors representing the different types of producers, we will show in this paper that a competitive production subsidy of 0.5 MAD can triple the market share of small farmers while being in a situation of Nash-Cournot’s equilibrium. In addition, the addition of a subsidy to production costs will reduce the price of milk and, thus, increase the annual milk consumption of Moroccans from 59 liters, which is below the world average consumption, to 94 liters annually, thus benefiting the consumer in addition to small farmers.http://dx.doi.org/10.1155/2021/9094551 |
| spellingShingle | Ali Labriji Youssef El Foutayeni Mostafa Rachik A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco Journal of Applied Mathematics |
| title | A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco |
| title_full | A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco |
| title_fullStr | A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco |
| title_full_unstemmed | A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco |
| title_short | A Subsidy Strategy to Boost the Activity of Small Milk Producers in Morocco |
| title_sort | subsidy strategy to boost the activity of small milk producers in morocco |
| url | http://dx.doi.org/10.1155/2021/9094551 |
| work_keys_str_mv | AT alilabriji asubsidystrategytoboosttheactivityofsmallmilkproducersinmorocco AT youssefelfoutayeni asubsidystrategytoboosttheactivityofsmallmilkproducersinmorocco AT mostafarachik asubsidystrategytoboosttheactivityofsmallmilkproducersinmorocco AT alilabriji subsidystrategytoboosttheactivityofsmallmilkproducersinmorocco AT youssefelfoutayeni subsidystrategytoboosttheactivityofsmallmilkproducersinmorocco AT mostafarachik subsidystrategytoboosttheactivityofsmallmilkproducersinmorocco |