'Fair' Milk Quota Is Good News All Round
UK - The Ulster Farmers’ Union has welcomed the decision by the Rural Payments Agency to allocate two per cent additional milk quota on a pro rata basis to all active producers.
3 April 2008
1 minute read
| UFU Deputy President John Thompson |
UFU Deputy President John Thompson said; “In total producers will receive a 2.5 per cent milk quota increase because a 0.5 per cent increase was also scheduled as part of the 2003 CAP Reform agreement. Active producers will receive their allocation based on the net quota they held on 31 March 2008 and should receive confirmation of their allocation in June”.
John Thompson said the Union supported the quota allocation method; “We believe allocating quota on a pro rata basis is the only fair way to implement this EU decision and we are pleased that this is the method chosen.
However the EU Commission needs to be very careful that future plans to increase EU quota and the potential production response do not introduce more volatility to market prices. We remain concerned that dairy markets are finely balanced and there was clearly a lack of confidence among purchasers at the March milk auction. Dairy farmers need stable and strong prices going forward to meet the challenge of rising production costs and investment”.
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