EU commission rejects milk quota changes

The outcome of protracted talks on the problem "exclude ideas such as a 5% quota reduction or a freeze on quota increases", said the document, seen Monday by AFP.

"Quota system changes would not respect the outcome" of decisions taken to adapt the EU's Common Agriculture Policy to confront the sector's needs, said the text, to be published Wednesday, 22 July 2009.

Last November, EU farm ministers agreed to lift milk production quotas by 1% per year before scrapping them altogether in 2014-2015.

But in recent months, European farmers have ramped up protests in search of support through financial aid or by limiting supplies, as dairy product prices collapsed due to low demand caused by the financial and economic crisis.

The commission, the EU's executive arm, has agreed to introduce very targeted aid to the sector but has refused to go back on its decision to scrap the quota system.

"Putting this policy into doubt would only create uncertainty, delay the restructuring process and render no service to the many dairy producers and their families who need clear guidance as they plan for their future," the draft document said.

Quotas were introduced in 1984 to support prices and tackle the then notorious butter mountains and milk lakes in Europe created by overproduction.

Source: AFP

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