Driven by growth in the emerging economies, world output has increased by 56% over the last thirty years. We know that milk quotas did not save the market from significant fluctuations in prices and incomes, from disruptions or even from the 2008/2009 crisis. This is why any likelihood of a fall in prices is so feared by farmers. In France, business insolvencies in the dairy sector were marked by a higher proportion of dairy cattle farms. ", "The measures I have put forward in my dairy report, from strengthening contractual relations to improving the operation of the Milk Market Observatory, do not reinvent the wheel. The milk market has for many years been characterised by regulations and quotas, but in 2015 the EU's milk quotas were lifted. However, the expected growth in exports to China and other countries is likely to turn out to the detriment of European farmers, who have not received cost-covering prices for their milk for many years. The EU needs to become a global leader and not a global follower. Firstly, the possibility of an export drive to conquer new markets will benefit France. The quotas were introduced in 1984 when production outstripped demand with the aim of putting an end to Europe's "milk … In terms of world production, France is also among the leaders, in 8th place. The quotas were introduced in 1984 to address an oversupply of milk on the EU market. Milk quotas were introduced to address the structural oversupply on the EU market of the late 1970s and early 1980s that had led to the infamous milk lakes and butter mountains. One cow looked a bit lopsided, having lost her horn when the cake was carried to the farm yard. The sector is however highly exposed to the volatility of prices and costs, which are the main areas of uncertainty in terms of managing a dairy farm. The final date was decided in the 2003 CAP reform, and reconfirmed in 2008 with concrete steps to provide a "soft landing" by the end of March 2015. In addition, dairy products have a high income-elasticity: a moderate increase in income results in a strong increase in demand. This way, European dairy farmers intended to denounce the fact that there are no sufficient crisis instruments for the time after the quota. The Dwans’ 110-cow herd ate real grass behind the fence, oblivious to the fact they were about to be milked under the quota regime for the last time. In 2012 the Parliament approved so-called Milk Package with the aim to strengthen position of dairy farmers in the milk supply chain e.g. ", "We should not be in a situation where we wait with baited breadth on the outcome of commodity auctions in the US and New Zealand. milk quota system to expire on April 1st 2015. Advanced search. The hill farms and mixed and livestock farming operations are more sensitive to variations in prices and costs than farmers on flat prime agricultural land. Now we should make the most of the liberalisation of the dairy market but at the same time we must remain vigilant and ready to step in if there are any disruptions. Who we are Contact search . The end of milk quotas: an unwritten chapter for the CAP. The milk quotas system is expected to end with the 2014/15 quota year.. How the quota system works . a request? April 1st 2015 marked the end of milk quotas in Europe, a regulatory tool imposed in 1984 in response to overproduction, leading to the so-called “butter mountain” and the “milk lake”. Posted on 31/03/2015 28/04/2015 - Posted by Luc Vernet. The Milk Quota Scheme ended on 31 March 2015. ", "There are many other challenges but there are also quite a few tools made available to the Commission, member states or directly to farmers to address them. It has taken French farmers longer to move into this segment. Finally, whilst the proportion of certified organic land in France is low (compared to that of its competitors), it has been on the rise since 2005. Milk quotas were originally introduced for 5 years, but the expiry date has been put back several times. EU milk quotas have been scrapped after more than three decades of efforts to prevent overproduction. First introduced in 1984 at a time when EU production far outstripped demand, the quota regime was one of the tools introduced for overcoming these structural surpluses. Subscribe. CALL US:Tel. April 1 st 2015 marked the end of milk quotas in Europe, a regulatory tool imposed in 1984 in response to overproduction, leading to the so-called “butter mountain” and the “milk lake”. IFA dairy chairman Seán O’Leary encouraged the farmers to tuck into the cake saying: “You always wondered what grass … Milk quotas were originally introduced for 5 years, but the expiry date has been put back several times. The elimination of European Union milk quotas as from March 31st 2015 creates a new context in Spain. These include e.g.