DAIRY PRODUCTS : ANALYSTS PREFER SOFT LANDING' TO ABRUPT ABOLITION OF MILK QUOTAS.

Europe Agri, April, 2008

The impact of the abolition of EU milk quotas on the European dairy sector is the subject of a study carried out by the French Institut d'Economie Industrielle (IDEI) at the request of the European Commission. The study forms part of the reflection process launched in connection with the Common Agricultural Policy health check' under the impetus of Agriculture Commissioner Mariann Fischer Boel. It shows that a soft landing' is preferable to an abrupt abolition of quotas, which would create too great a shock in many member states. The scenarios studied - gradual and abrupt expiry of quotas - lead to a similar situation at the end of the analysis period (2015 or 2016), note the experts. "In the absence of quotas, collected production is 5.1% higher than in the reference...

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