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Milk Quota
Definition: milk quota
milk quota: a system by which farmers are only allowed to produce certain amounts of milk, introduced to restrict the overproduction of milk in member states of the EU. Abbr MQ. Quotas were introduced in 1984, and were based on each state’s 1981 production, plus 1%. A further 1% was allowed in the first year. A supplementary levy or superlevy, was introduced to penalise milk production over the quota level. In the UK, milk quotas can be bought and sold, either together with or separate from farmland, and are a valuable asset. The government is responsible for the setting of quotas for milk production, according to the directives of the EU commission. Understanding the regulations and market dynamics of milk quotas can help farmers optimize their dairy production and profitability.
Originally posted 2005-09-06 08:53:52.
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