Report indicates that "soft landing" is on track
The Commission has also adopted a separate report on the dairy market situation and the consequent conditions for smoothly phasing out the milk quota system. With only 3 Member States (DK, NL, CY) having produced more than their quota in 2009/2010 and milk quota prices now having a very low value, already zero in some Member States, the report concludes that soft landing is on track in an overwhelming majority of Member States. Under these circumstances, it concludes that there is no reason to revisit the Health Check decisions with regard to the gradual increase in quotas and the end of the quota regime on 1 April 2015. In order to provide an additional safeguard, the report also suggests that, in exceptional cases and where existing policy measures are insufficient, the Commission could consider a mechanism that would allow milk producers to be compensated for reducing their deliveries in order to avoid serious imbalance in the market. To further pave the way towards quota abolition, the Commission raises for consideration the organisation of meetings gathering experts of the Management Committee for the single CMO with the Advisory Group on Milk in order to assess market developments and prospects. A second report is scheduled for 2012.
For more information, please contact Rachael Langlands-Brown on 029 2089 5024.