The European Dairy Association (EDA) has said that it will welcome “the change and the challenges” that the end of European milk quotas will bring, when the deregulation takes effect tomorrow.
Plans for the quotas’ abolition were first announced in 2009, and April will be the first month without quota regime in the dairy sector for more than 30 years. Now, the voice of the European milk processing industry has claimed that the change will bring about greater market orientation and enhanced market transparency, which could allow companies in the sector “to better manager the price and cost volatility,” the EDA said.
EDA secretary-general Alexander Anton said: “The end of the milk quota is one more step towards market orientation of the Common Agricultural Policy (CAP) – a step that has been prepared for in a political process that started in 2003. The dairy sector, dairy farmers and their milk processing companies are prepared for this step.
“The end of the quota regime is a big step in terms of CAP simplification, a core request of all agricultural stakeholders and a steady mantra of politicians. For decades, dairy companies have been in charge of managing the milk quota system at their level, including the levying of the super levy payments. It goes without saying that the end of the quota will lower the administrative burden at all levels. This will naturally further enhance the competitiveness of the whole sector.”
The new conditions also provide a more positive outlook for the future, Mr Anton continued. He added: “As the EU dairy sector, we have already started our reflection on how to shape the CAP post 2020, the future European policy on rurality, natural resources and food. This in order to anticipate and assure the dynamics of our sector for the future and to continue to play our role when it comes to successfully facing the challenges of productivity, sustainability and economic development of our sector across Europe.
The time has come for a prosperous and dynamic dairy sector driven by the realities of the global market.”
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