2018/07/18. Today, 2 years ago - on 18 July 2016 - Agriculture Commissioner Phil Hogan announced the EU volume reduction program.
The measure has been a great success and has shown that even small reductions have a big effect on producer prices.
Watch a little movie here:
Youtube: https://youtu.be/F81KjpwUQIg
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A study by A. Fink-Kessler and A. Trouvé has examined the EU volume reduction program. Here is the English study in detail: http://www.europeanmil
The main findings of the study are:
• Voluntary delivery reduction was a great success: with a small reduction in the delivery quantity, a large price effect was achieved;
• Immediate effect on milk prices: price change from 25.68 Ct (07/2016) to 34.16 Ct (07/17);
• 48,200 milk producers from 27 EU member states participated;
• Reduced volume: 833,551 t (about 2% of milk volume in the same period of the previous year);
• The 4 largest milk producing countries were the strongest users of the program: Germany (232,300 t), France (152,732 t) and the United Kingdom (90,814 t). Together, these three countries account for 57% of the reduction. The Netherlands reduced 56,117 t;
• Ireland had the highest percentage of participation of farmers (21%) and reduction (4%).
Background: The EU milk volume reduction program ran from October 2016 to January 2017. Farmers were given the option to voluntarily reduce the production volume for compensation (14 cents per kg of reduced milk compared to the 3-month period of the previous year).