Brussels, 12/12/2007 (Agence Europe) - On Wednesday 12 December the European Commission proposed a 2 percent increase in milk quotas (total of 2.84 million tonnes) beginning on 1 April 2008, the date when the new trade campaign begins. This increase will be shared equally between the EU27 member states and will not affect the results of the common agricultural policy (CAP) bill of health. In this context, the Commission suggested a gradual rise in quotas before their expiry on 31 March 2015. Mariann Fischer Boel, Commissioner for Agriculture, affirmed: “We have seen a sharp rise in milk prices over the past year and a growing call for higher quotas. In the coming years, demand for high value-added dairy products - particularly cheese - will continue to rise both within Europe and around the world. We need to equip our farmers to meet that increased demand."
The proposal is part of a report that demonstrated that the market will have no problem absorbing a 2% rise in quotas. According to the analysis, the increase in cheese and fresh milk production between 2003-07 absorbed 5.5 million additional tonnes. Additional supply of 8 million tonnes will be needed for 2007-17 in order to respond to increase in domestic demand, particularly for cheese, explained the Commission.
Germany is the EU country with the highest national milk quota of 28.8 million tonnes (t) a year, taking into account the proposed 2% rise. France comes next with 25 million t, United Kingdom 15.1 million t, Netherlands 11.4 million t, Italy 10 million t and Poland 9.5 million t. (L.C.)