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EU milk quotas must go, say UK leaders

By Chris Mercer, 14-Feb-2007

Related topics: Markets

More than two thirds of leaders in the UK dairy industry want EU milk quotas to be scrapped, a survey has revealed, echoing comments from the European Commission recently.

Industry association Dairy UK surveyed more than 50 industry leaders set to attend a conference on the future of the dairy sector this week.

 

 

 

It found 71 per cent of attendees wanted an end to quotas, while even more, 77 per cent, wanted quotas abolished before 2015 - when the current system is up for renewal.

 

 

 

The survey shows industry opinion moving firmly away from a quota-based system, which is increasingly viewed as hampering industry development.

 

 

 

European agriculture commissioner, Mariann Fischer Boel, recently agreed that quotas were past their sell-by-date, during a speech to the European Dairy Association. "In my opinion, quotas do not sharpen competitiveness; they stifle it. They should go."

 

 

 

In the UK survey, most of those surveyed said they expected the end of quotas to make milk prices more volatile, and possibly even send them lower.

 

 

 

But this, many said, would be tempered by new opportunities for industry growth and a reduction of oversupply.

 

 

 

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."

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