The effect of support policies in small ruminant breeding: West Mediterrianean region, policy analysis matrix approach

Effective distribution of resources from past to present has been an important issue in terms of maintaining the optimum welfare level of the society. Support policies, which are important tools within the scope of government intervention, allow for cross-sector resource transfers. Increasing competitiveness of the sector by the resource transfer is carried out, however, is expected to improve the welfare of both producer and society. The extent to which this result is achieved is a question that needs to be examined. In recent years, support items have been included in small ruminant breeding in Turkey. The main axis of this study is to reveal the effects of government interventions both in terms of milk production activity of small ruminant sector and society. It is important to demonstrate the efficiency of the policies implemented both in terms of dairy goat breeding and dairy sheep breeding and the social distribution of resources in terms of sustainability in the sector. The aim of this thesis was to determine the economic and social profitability of dairy production activity in terms of competitiveness of ruminant enterprises in the Western Mediterranean Region and to evaluate the effects of the implemented policies on milk production activity in terms of producer and society. In this context, the Policy Analysis Matrix approach was used to determine the policy effects and competitiveness of milk production of small ruminant breeding in the Western Mediterranean Region. In the West Mediterranean Region, private profitability of the enterprises was calculated by means of the data collected from the surveys of goat and sheep breeders. In addition, the profits, under the assumption that the enterprises operate under free market model, are calculated based on the social prices. While the efficiency of the policies implemented on the one hand is measured by means of the calculated private profit and social profit, it has been examined whether the policies implemented are effective in terms of community welfare. In addition, existing policies were evaluated in terms of competitiveness of milk production activity of small ruminant breeding. Stratified Sampling Method was used to determine the appropriate sample size to represent the population of 8.611 sheep goat breeders operating in the Western Mediterranean Region. Enterprises are divided into 3 layers based on the number of goat and sheep that the breeders have. Based on the variance and averages of each population and each layer, the sample size was calculated as 122 according to the 5% margin of error and 95% confidence intervals. A total of 146 questionnaires were completed 20% more than the total sample size. The results obtained by the PAM approach give signals of danger for the sustainability of milk production activity of small ruminant breeding in the region. The values calculated with social prices indicate that milk production of sheep and goat breeding is not possible without government intervention. The profit calculated with social values shows that only the enterprises which have 125-249 goats and sheep, resources are used effectively and that profit can be obtained without government intervention at this scale. Again, it is seen that the effect of the supports in this area is eliminated with the effect of state interventions on tradable inputs and national resources and the net effect of the interventions on the producer is negative. In order to ensure the economic sustainability of milk production activity of small ruminant breeding in the region, it is necessary to take measures to increase milk production income and to reduce feed costs and to make necessary arrangements for the breeders to benefit from more support items.