Milk quotas in the United Kingdom

Milk quotas in the United Kingdom refers to the system of milk production limits that was established by the European Union (EU) in 1984 to control the volume of milk being produced in member countries, including the United Kingdom (UK). The system was designed to prevent the overproduction of milk, which had led to the creation of "milk lakes" and "butter mountains".

History

The EU introduced milk quotas in response to the Common Agricultural Policy (CAP), which had encouraged farmers to produce as much milk as possible. This led to a surplus of milk and dairy products, causing prices to plummet and resulting in the infamous "milk lakes" and "butter mountains". The milk quota system was designed to stabilise the market by limiting the amount of milk that each farmer could produce.

In the UK, the milk quota system was implemented in April 1984. Each farmer was allocated a quota, which was based on their average milk production in the three years prior to the introduction of the system. If a farmer produced more milk than their quota allowed, they would have to pay a levy.

Impact

The milk quota system had a significant impact on the UK's dairy industry. It led to a reduction in the number of dairy farms, as many smaller farmers were unable to compete with larger farms that had higher quotas. It also encouraged farmers to improve their efficiency and productivity, as they were forced to produce less milk but still needed to maintain their income.

However, the system was also criticised for being inflexible and for not taking into account changes in market demand or production costs. It was also seen as a barrier to new entrants into the dairy industry, as it was difficult for new farmers to acquire a quota.

Abolition

The EU decided to abolish milk quotas in 2015, as part of a wider reform of the CAP. This decision was welcomed by many in the UK's dairy industry, who saw it as an opportunity to increase production and take advantage of growing global demand for dairy products. However, there were also concerns about the potential for overproduction and a return to low prices.

See also

• Dairy farming in the United Kingdom
• Agriculture in the United Kingdom
• Common Agricultural Policy

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