Survey - Majority wants abolition of EU quota regime

UK - A survey has confirmed over 70% of leaders in the UK dairy industry want EU milk quotas scrapped, echoing similar comments from the European Commission recently.
calendar icon 15 February 2007
clock icon 2 minute read

Dairy industry leaders are also believe the sector’s future interests will be best served by meeting the challenges of an increasingly open market place.

The vision of the future of the industry is highlighted in the results from a survey of industry experts conducted by Dairy UK in advance of a conference it is holding on CAP Reform in London this week.

Jim Begg, Director General of Dairy UK, said: "The views expressed by important industry figures in this survey are a clear declaration of confidence in being able to operate in future in an increasingly open and competitive market place."

More than 50 industry figures who will attend the conference responded to a questionnaire from Dairy UK on the effect the abolition of the quota regime will have on the industry.

It found:

  • 71% are in favour of abolition of the quota regime.
  • 77% want abolition by 2015 or earlier.
  • The most negative effect of quotas is minimising the impact on market forces and restricting industry growth.
  • The most positive impact of quotas is the prevention of the over supply of milk and generating higher milk prices than expected.
  • The average industry view is that abolition will probably result in more volatile or lower milk prices.
  • Around 60% expect intervention payments and export refunds to be abolished as well as quotas.
Mr Begg said: "A clear majority believes in the abolition of quotas even though they expect this to be accompanied by cuts in support prices that will affect the industry’s price environment.

"The survey shows that the industry is fully alive to the importance the debate on quotas will have on its future and that it has a realistic appreciation of the direction it is going in and the potential effects that abolition will have.

"Dairy UK’s conference will provide the platform from which we will develop our policy position that we will feed into the debate in the months to come. There is a great deal that needs to be decided and the conference will be an excellent opportunity to stimulate what will be an ongoing and crucially important debate."

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