Click to contact us or call 02476 353537

No backwards step on supply management says Dairy UK

Speaking at the Agra Europe Conference in Brussels today, Dairy UK Policy Director Peter Dawson said: “The dairy sector doesn’t want to see a step back towards supply management by the Commission, as is currently being proposed by the European Parliament.

Speaking at the Agra Europe Conference in Brussels today, Dairy UK Policy Director Peter Dawson said: “The dairy sector doesn’t want to see a step back towards supply management by the Commission, as is currently being proposed by the European Parliament.

“There is a lot that is fundamentally wrong with the Parliament’s proposal”, explained Mr Dawson. “It is in opposition to the overall evolution of EU agricultural policy towards greater market orientation, it is divisive and it discriminates against efficient farmers. It would probably send signals to dairy farmers that would deliver results contrary to those intended and, in all honesty, it probably would not be timely enough to have any effect.

“However, the most fundamental problem is that it just won’t work. The EU is now exposed to global market forces. The EU dairy market follows the price trend in the world market. In a globalised market place, supply management would require the EU to seek to manage the global supply/demand balance on its own, which obviously it can’t.”

Mr Dawson advised delegates that the reason that the Parliament was considering supply management was to mitigate the market impact of quota abolition. However, Dairy UK had undertaken its own analysis and concluded that the impact of the abolition of milk quotas on the global supply/demand balance was likely to be only marginal.

“Even if there is a surge in milk production in some European countries”, said Dawson, “it shouldn’t take long before the additional volume is taken up by the underlying growth in global demand.”

 

Leave a Reply

Your email address will not be published. Required fields are marked *

https://www.farmingmonthly.co.uk/contact/A great opportunity to promote your business to our dedicated readership of farmers, landowners, estate managers and associated agricultural professionals.
Contact us today on 02476 353537 and let's work together to drive your business forward.