Anticipation and angst over milk quotas | Fin24
 
  • Illicit Tobacco Trade

    The SA Revenue Service says it is going to court to recover R200m in taxes in a decade-old case

  • SAA Strike

    The airline says it will take legal action over 'malicious' claims of unsafe flights by unions.

  • New CEO

    After months of speculation and delays, Andre de Ruyter has been named Eskom's new head.

Loading...

Anticipation and angst over milk quotas

Mar 29 2015 14:09

Paris - European dairy farmers are facing the end of three decades of milk quotas on Wednesday with a mixture of anticipation and angst as it will allow them to serve growing demand in emerging markets, but could also cause a crash in prices.

Farmers will be allowed churn out as much milk as they want from 1 April.

While the quotas had been increased in recent years - growing 1% a year between 2009 and 2013 --- the complete liberalisation of the market is seen as a game changer for producers.

In northern Europe, farmers have hailed the move as a chance to cash in on the growing global thirst for milk, particularly in China.

Ireland has already announced plans to boost its milk output by 50% by 2020. The Netherlands and Germany, Europe's largest producer, are gearing up for increases of 20%.

Butter mountains

"We're happy the quotas are being scrapped. We're prepared," said Karl-Heinz Engel, president of the German dairy industry association, MIV, insisting that the sector was "export-orientated and competitive".

But many farmers in France, Europe's second-biggest milk producer, have adopted a wait-and-see approach, preferring to wait for the demand to pick up before ploughing money into boosting their output.

The quotas were introduced in the mid-1980s to staunch the infamous milk lakes and butter mountains that had built up on the back of generous EU production subsidies.


france  |  agriculture
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...