Published in Scientific Papers. Series D. Animal Science, Vol. LIX
Written by Vasile DREVE, Ion CĂLIN, Bogdan BAZGĂ
The dairy market has a major contribution to the agricultural turnover in the EU as a whole as well as in most of the Member States (MS) of the EU. The milk quota system was introduced in 1984, in order to limit public spending on the sector, to control milk production, and to stabilize milk prices and the agricultural income of milk producers. The abolition of milk quotas was aiming to improve the competitiveness of European dairies, making production more sensible to market variations. The removal of milk quotas at the same time intensifies the economic outlook of certain areas/categories of dairy production with comparative disadvantages. Medium and long term prospects are favorable for the dairy sector in line with population growth and appetite for Western-style diet in emerging economies. This does not prevent, however, short-term market fluctuations. Finally, the current difficulties faced by the milk producers milk in certain areas worst affected by feed price increases cannot hide the overall positive image of the sector.
[Read full article] [Citation]
