Thursday, March 31, 2016

EU Goes Back to SUpply Management

Via Chris Clayton at DTN,on the problems of dairy in the EU

A key to the EU aid package involved reestablishing some form of supply management for Europe's dairy farmers. The call to regulate milk production comes just one year after the EU abolished 30 years of dairy production quotas. The lift of the quota, coupled with a lack of increased market access, translated into a glut of milk on the market now across Europe. The new aid package calls for reducing milk production on a voluntary basis for up to six months with a possibility of extending those voluntary measures later.

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