Press Release: Dairy market: Commission proposes 2 percent increase in milk quotas from April 2008

The European Commission today proposed a 2 percent increase in milk quotas beginning on 1 April 2008 to meet growing demand both within the European Union and on global markets. The increase, a total of 2.84 million tonnes, would apply on an equal basis to the 27 Member States. It does not prejudge the ongoing review of the dairy market in the Health Check of the Common Agricultural Policy, where the Commission has suggested a gradual increase in quotas before they expire on 31 March 2015. Today's proposal is accompanied by a report on the outlook for the EU dairy sector, requested by the Council at the time of the 2003 CAP reform agreement. This shows that demand for milk has grown between 2003 and 2007 and is expected to continue growing between 2007 and 2014. The outlook for both demand and prices on the world market is equally positive. The report shows a 2 percent increase to be fully justified. The Commission hopes that the Council and Parliament will be able to reach a rapid decision to allow the increase to take effect by 1 April.