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European milk: the future

08-Nov-2002

A consortium of European experts, at the request of the European Commission, has issued a report that analyses the impact of future options for the milk quota system and the common market organisation for milk and milk products.

Aimed at assessing how dairy markets and production outcomes will be affected by alternative policy reforms, the report analyses the impact of four different sets of scenarios for the future of the EU milk quota regime on milk and dairy products markets and EU milk producers.

When the 'Agenda 2000' measures for the milk sector were adopted in May 1999, the European Council also made the decision to "conduct a mid-term review in 2003, on the basis of a Commission report, with the aim of allowing the present quota arrangements to run out after 2006".

The report begins with a brief summary of the current situation of the EC milk market and the instruments, which form the common market organisation for milk. The four different sets of scenarios for the future of the EU milk quota regime are: a status quo scenario which corresponds to the Agenda 2000 policy package; repeating the Agenda 2000 approach which assumes the Agenda 2000 reform is deepened over the period 2008-2010; a two-tiered and cut quota scenario; and the quota abolition scenario.

The Institut National de la Recherche Agronomique (INRA) in France and the University of Wageningen, Netherlands compiled the report. The full version can be obtained from the Commission website.