Commission report on phasing-out of milk quotas

11 December 2012

The Commission has adopted its second report on the evolution of the market situation and conditions for a smooth phasing out of the milk quota system, as requested by the Council as part of the 2008 CAP Health Check. The report, which will now be forwarded to the Council and the European Parliament, concludes that the "soft landing" is on track: 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.

EU Commissioner for Agriculture and Rural Development Dacian Cioloş stated: "I welcome this report on the state of the sector, as requested by the Council in 2008, and take note of its conclusions. Of course we will continue to monitor the situation closely, as the dairy sector remains a priority for me. At the same time, I am optimistic that the milk package, which entered into force in October, will provide new elements for strengthening the producer's role in the dairy supply chain, such as addressing the issue of contracts which was not previously covered." He concluded that "We will also come forward with a further report in mid-2014 as foreseen in the milk package which will pay particular attention to the situation in disadvantaged regions and covering potential incentives for joint production agreements".

The report can be downloaded from the following page of the Europa website http://ec.europa.eu/agriculture/milk/quota-report-2012_en.htm

Source: Commission report on phasing-out of milk quotas
Author: EU

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