Milk quotas here for a few more years!!!

12000 litre

Member
According to contacts on the continent (i have some in rather high places) they are lobbing very hard though out europe to hold quotas due to recent events. These events have been politically motivated thus all governments have to respond! But how! This is not going to vanish Russia not backing down. Should we Hold quota for several more years ? there has been no official or legal reason raised why this could not happen!!!! resulting in the protection of the eu dairy farmer. I am a young man whom has expanded bought farms and I am ambishious. I never thought I would say this but I feel quotas should stay to protect our industry for the short term!!!
Question is how much power and voice do these farmers have throughout Europe to push this idea through??? Should we be buying quota up as an insurance policy or perhaps as an investment
 
It would not be too much of a problem to UK farmers as we don't reach national quota. The last 500,000 litres I bought about 10 years ago and never needed may come in handy after all!

More fool you if you believe that you are insulated from World Market Prices!

Europe is awash with surplus milk.

Supermarkets currently sell 4 pints = 2.272 Litres for a £1.

By the end of September unless there is intervention they will selling 4 pints for 75p.

A 25% reduction, which will be passed on to suppliers = Milk Producers.

Can you survive on 15p a litre?

Ianto
 

12000 litre

Member
Ianto I read your statement.. All true but apart from the frustration we all share I was unclear on where you stand on the issue of quota been held ?
 
Ianto I read your statement.. All true but apart from the frustration we all share I was unclear on where you stand on the issue of quota been held ?

I am not a milk producer, but that is academic, as there will be a knock effect for livestock farmers in general in my opinion.

Quotas are here to stay, and there will have to be a reduction in the National Quota if the pain is spread equally across the EU.

In turn there will be a reduction in Quotas for individual producers.

At approximately 0.1 pence a litre which I understand is going rate for clean quota, well worth a gamble in my opinion, provided you have a margin on a milk price of say 12p a litre.

It is uncharted territory, and I can only guess what will happen.

It would not surprise me to see quotas introduced for Pig Meat and even Beef.

Ianto
 
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frederick

Member
Location
south west
what rubbish to wish to keep the eu shackled. the market is crashing yet we still have quotas today they dont seem to be helping at the moment. for reintroduction to be successful to increase prices there would have to be a decrease in on farm quota of up to 20 percent and the eu would have to reintroduce trade barriers to milk imports otherwise the retailers would still use the global price to hit our milk price just like they have for the last 5 years ir more still under quota regime.

the only person who would benefit is the man getting out of milk and getting 50 ppl for his quota off of me so I can just remain producing the same amount of milk.

if we want to grow as an industry we just have to wether the storm and come out the other side
 

frederick

Member
Location
south west
I forgot to add last night that the tool that enabled quotas to work was a willingness by the eu to purchase surplus milk into intervention. I think large scale intervention buying is never likely to happen again and with intervention around 20 ppl its probably not going to help much
 

neilo

Member
Mixed Farmer
Location
Montgomeryshire
Isn't the Irish government encouraging a massive increase in milk production there, giving hefty grants to get people to expand or convert? I can't see them voting in favour somehow.;)
 

12000 litre

Member
Ireland true but there vote is tiny in the eu. Come on we all know the eu commission will always favour the smaller producer in main land Europe. Ireland is still governed by quotas so there could be no legal challenge if they were extended.. As for intervention look at how much the fruit and veg producers are getting from the tax purse so they will LEGALLY have to step in as world free trade agreement has been affected by political motivation....I won't be standing in the way of a quota extension if its comming (which seemly its on its way)
Lets be honest would any of us?? We need to do something true!!!
 
Ireland true but there vote is tiny in the eu. Come on we all know the eu commission will always favour the smaller producer in main land Europe. Ireland is still governed by quotas so there could be no legal challenge if they were extended.. As for intervention look at how much the fruit and veg producers are getting from the tax purse so they will LEGALLY have to step in as world free trade agreement has been affected by political motivation....I won't be standing in the way of a quota extension if its comming (which seemly its on its way)
Lets be honest would any of us?? We need to do something true!!!

It would be worth Dairy Farmers reading the following report, although it is very long and comprehensive.

The situation has changed but it does illustrate that most of the Dairy Companies in Northern Europe are Cooperatives owned by Dairy Farmers.

https://portal.mtt.fi/portal/page/portal/mtt/mtt/julkaisut/jul116.pdf

Ianto
 

12000 litre

Member
They desire to decrease the % of quota held by an amount and levy imports.. This is not my idea and to be honest we won't have a say will we
 

frederick

Member
Location
south west
They desire to decrease the % of quota held by an amount and levy imports.. This is not my idea and to be honest we won't have a say will we

I think this is the important thing to stress, if quotas are the answer it is not the maintanance of the current scheme it is the tightening of it and a forced production decrease, this I think would be unwanted by the majority of UK producers
 
They desire to decrease the % of quota held by an amount and levy imports.. This is not my idea and to be honest we won't have a say will we

It will happen I believe. Milk Price will drop and there will an intervention floor price - not for liquid milk but for Dairy Products, such as butter and cheese.

The intervention floor price will be in Euros, which given the strength of the £ is bad news for the UK Dairy Sector.

We are heading back to the days of Butter Mountains.

Ianto
 
I think this is the important thing to stress, if quotas are the answer it is not the maintanance of the current scheme it is the tightening of it and a forced production decrease, this I think would be unwanted by the majority of UK producers

What UK Milk Producers want is rather irrelevant in the current situation.

There is a Common Agricultural Policy which the UK has adhere to while it remains in the EU.

If the UK leaves the EU, I doubt if HMG would give the Dairy Industry support or continue SFP.

You would then have to compete in a World Market, unless the UK puts up the shutters and bans or introduces quotas on imports of Dairy Products. Which is highly unlikely, as Agriculture is only a small part of UK Exports, and expendable.

Ianto
 

frederick

Member
Location
south west
I think it is important though that we dont wander into quota cuts when people actually thought they were supporting the status quo.

I think you would be suprised how many northern countries would be against quotas not going.

Irelands significance could be very great if eu horse trading resulted in mr ciolos going and an irishman being appointed ag commissioner. its a distinct possibility
 
I think it is important though that we dont wander into quota cuts when people actually thought they were supporting the status quo.

I think you would be suprised how many northern countries would be against quotas not going.

Irelands significance could be very great if eu horse trading resulted in mr ciolos going and an irishman being appointed ag commissioner. its a distinct possibility

Phil Hogan?

Possible but not probable in my opinion.

Here the official EU Notice on Intervention in the Dairy Industry.

http://europa.eu/rapid/press-release_IP-14-954_en.htm

Ianto
 

robin banks

Member
Location
Ireland
Isn't the Irish government encouraging a massive increase in milk production there, giving hefty grants to get people to expand or convert? I can't see them voting in favour somehow.;)
I love these tall tales. Its a half truth. No grants available at the moment for most people. But yes government is encouraging dairying. And having a quota did not stop my milk rising to 40 cent or it dropping to 24 cent in 2009. All happened while we have quota. My milk price follows world price. And thankfully yours is starting to do the same. Years ago your market was completely dysfunctional and serious threat to my liquid milk
 

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