European Parliament Second Guesses Dairy Quota End

European dairy quotas are scheduled to end in 2015, though recent action challenges that notion.

The European Parliament is perhaps second guessing the European Union’s decision to eliminate dairy production quotas by 2015.

This week, the Parliament passed a motion that those farms who exceed their quotas by more than 5% in 2015 would be penalized, and those who reduce milk production more than 5% would receive a bonus, says Tom Kuber, president of the U.S. Dairy Export Council.

For this to become official policy, however, it will have to survive a complex European approval process. The French support such a move, but the Irish, Dutch, Brits and some Scandinavians are in favor of quota elimination and competing on world markets, says Suber.

Suber spoke Tuesday at the Dairy Farmers of America annual meeting here in Kansas City.

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