Brussels, 11/12/2012 (Agence Europe) - The European Commission continues to believe that “a soft landing” is on track, i.e. a smooth phasing-out of the milk quota system. In a report on the conditions relating to the phasing-out (as of 2015) of milk quotas, published on Monday 10 December, the Commission notes that “in the vast majority of member states, quotas are no longer relevant to limiting production and the quota price (paid by farmers seeking additional quota) is already zero or close to zero”. The Commission considers that it is not necessary to amend the existing framework, which has provided security for milk producers since 2008 and proves effective for ensuring phasing-out in order to reach a quota-free environment.
The Commission admits that some concern has been expressed regarding the rural areas in which dairy production plays a central role, in particular, in the context of milk quota expiration. In this respect, the integration of the dairy sector in the “new challenges” under the second pillar of the common agricultural policy (CAP) (on rural development) offers an additional support to dairy producers in order to prepare for the end of quotas. The CAP reform proposals contain instruments likely to attenuate the potential impact of phasing out quotas, the report states.
Medium and long-term prospects are favourable for the milk sector, the report states. “This does not, however, prevent short term market fluctuations”, it adds. Furthermore, the Commission has issued an open call for tenders for an independent analysis of future developments in the milk sector from 2015 on, and will present, by 30 June 2014 at the latest, a report on implementing the provisions of the milk package (fully applicable since 3 October 2012). (LC/transl.jl)