The milk quota system and its effects on example of the chosen European Union countries

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Agata Malak-Rawlikowska


Keywords : milk quotas, effects of milk supply limits, dairy quota impact on structural change, milk purchase prices
Abstract
The problem of the milk quota system influencing on the EU dairy market has been analysed in that article. Especially changes in the milk production structure, rate of the concentration process and a level of the milk prices has been taken into account. As it was concluded, milk quotas, limiting the market milk deliveries and creating barriers for the farm development, significantly affected farm structural changes and slowed down foregoing rate of the concentration process in the researched countries. The effects caused by the milk quotas depend strongly on the particular rules of the system management, especially in the beginning years, on the milk production cut caused by the introduced limits. It was concluded also that milk quota system implemented in 1984 was one of the most important factors supporting growth of the milk prices until 1989 and sustaining them on the rather stable level after intervention reforms in 1988/89 and Mac Sharry Reforms in 1992. Milk quotas had broken down very significantly and there was a strong positive correlation (until 1984) between an increase of the target price of milk and the milk purchase price but also between milk price and dairy production costs.

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How to Cite
Malak-Rawlikowska, A. (2006). The milk quota system and its effects on example of the chosen European Union countries. Annals of Agricultural Economics and Rural Development, 93(1), 25–36. https://doi.org/10.22630/RNR.2006.93.1.3
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