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© 1974 Oxford University Press and the Foundation for the European Review of Agricultural Economics

other

The changing price of butter

DAVID G. MAYES

University of Exeter

Summary

This article examines the causes and effects of the rapid rise and fall in prices in the United Kingdom's import market for butter during the years 1970 to 1972. A simple model is set up to show the workings of the market under quotas during the years 1967 to 1969. This model is used to test whether there is any difference in the structural operation of the market when the constraint is removed The interrelationship between the prices of butter from the various exporters to the U.K. is explored and implications for the effects of price rises entailed by the adoption of the EEC's Common Agricultural Policy are drawn.


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