Dairy farms in Austria are rather small - 64 tons of milk quote per farm in 2008

-           Half of the dairy farmers held less than 40 tons of milk quota

-          Definitely less milk cows than in many other EU-countries

-          Smaller farms show higher production costs

„ Conclusion: smaller farms are less competitive and quit farming in a liberalized environment

„ Evidence: small dairy farms play still a dominant role. Why do small farmers still milk their cows?

‰ Explanations from theory and empirical data