UFU Say 2% Milk Quota a 'Mixed Bag'

UK - The Ulster Farmers’ Union says that the EU Commission decision to allocate a 2% milk quota increase to producers from 1 April is a ‘mixed bag’ for the industry.
calendar icon 19 March 2008
clock icon 2 minute read

UFU Deputy President John Thompson

UFU Deputy President John Thompson explained that while farmers would be pleased to receive a 2% quota increase, the Union remained of the view that global dairy markets were finely balanced and quota increases needed to be managed carefully to avoid oversupplying the market.

John Thompson said; “We will now expect the additional quota to be allocated across the industry on a pro-rata basis, based on producers net amount held at the end of the current quota year. However the UFU will continue to highlight to the Commission that dairy markets are finely balanced and increases in production could lead to volatility, which is bad for the industry”.

“It is easy to make these decisions when markets are buoyant, but the industry also needs to be sure that it can survive if prices ease back and our production costs remain at high levels. This quota increase potentially represents an additional 2.84 million tonnes of milk in the EU market. The impact of this must be monitored closely in the year ahead. Global demand for milk is rising at about 2% per annum and markets need to be managed so that we are able to supply this growing market, but do not rush into an over production scenario”.

The UFU says possible further increases in quota allocation in the CAP Health Check would also have to be considered carefully. “The Ulster Farmers’ Union’s priority will be to put forward proposals which we believe will uphold farm gate milk prices and avoid volatility in the global dairy market”, Mr Thompson said.

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