End of european milk quotas: a new era for the french dairy sector
Since the introduction of milk quotas in 1984, until their effective ending in 2015, milk production has undergone many reforms. Having regulated the market for over 30 years, milk quotas disappeared on 1st April 2015. The world of dairy is in turmoil, with some seeing the end of quotas as an opportunity to produce more, while others are anxious and concerned that potential European overproduction will lead to sharp price falls. And all this is taking place in a context of stiff competition.
In this panorama, we review the global and the European dairy market. We examine whether these fears and hopes are founded or not. Furthermore, as not all countries in the European Union are in the same boat, we focus particularly on the case of France. Are its producers sufficiently robust and prepared for the end of quotas? What are the inherent risks and consequences of liberalising the dairy market? To what extent can the lifting of quotas be seen as beneficial for producers?
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