REPORT FROM THE EUROPEAN COMMISION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Evolution of the market situation and the consequent conditions for smoothly phasing out the milk quota system
Date: 2010-12-08
Institutions: European Commission
Subjects: EU Member State, agricultural quota, common organisation of markets, milk, report

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EUROPEAN COMMISSION 

Brussels, 8.12.2010 
COM(2010) 727 final 

REPORT FROM THE EUROPEAN COMMISION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

Evolution of the market situation and the consequent conditions for smoothly phasing 
out the milk quota system 

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TABLE OF CONTENTS 

REPORT FROM THE EUROPEAN COMMISION TO THE EUROPEAN PARLIAMENT 
AND THE COUNCIL Evolution of the market situation and the consequent conditions for 
smoothly phasing out the milk quota system ............................................................................. 1 

REPORT FROM THE EUROPEAN COMMISION TO THE EUROPEAN PARLIAMENT 
AND THE COUNCIL Evolution of the market situation and the consequent conditions for 
smoothly phasing out the milk quota system ............................................................................. 3 

Mandate ...................................................................................................................................... 3 

Introduction ................................................................................................................................ 3 

1. 

Evolution of the market situation for milk and medium term prospects...................... 3 

1.1. 

Market developments to date ....................................................................................... 3 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

Evolution in terms of smoothly phasing out the milk quota system ............................ 5 

Milk production below quota ....................................................................................... 5 

Decreasing milk quota prices ....................................................................................... 6 

Expected evolution and sensitivity analysis................................................................. 6 

Member States on track for “soft landing” .................................................................. 7 

Concluding remarks ..................................................................................................... 7 

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REPORT FROM THE EUROPEAN COMMISION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

Evolution of the market situation and the consequent conditions for smoothly phasing 
out the milk quota system 

MANDATE 

Article 184(6) of Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a 
common  organisation  of  agricultural  markets  and  on  specific  provisions  for  certain 
agricultural  products  (Single  CMO  Regulation)  provides  for  the  Commission  to  present  a 
report  before  31  December  2010  and  31  December  2012  to  the  European  Parliament  and 
Council  regarding  the  evolution  of  the  market  situation  and  the  consequent  conditions  for 
smoothly  phasing  out  the  milk  quota  system,  accompanied  if  necessary  by  appropriate 
proposals. The present report is the first of the two above mentioned reports. 

INTRODUCTION 

This  report  is  made  up  of  two  parts:  the  first  part  describes  the  evolution  of  the  market 
situation  for  cow  milk  from  2008,  the  year  when  the  Health  Check  was  decided,  till  the 
middle of 2010 and outline medium term prospects. A second part examines the phasing-out 
of the milk quota system. 

1. 

EVOLUTION OF THE MARKET SITUATION FOR MILK AND MEDIUM TERM PROSPECTS 

After  a  significant  fall  in  prices  and  producers'  incomes  in  2008-09  that  followed  the  price 
spike  of  2007,  the  dairy  market  situation  has  recovered  in  the  second  half  of  2009  and 
continuously improved in the first half of 2010. 

1.1.  Market developments to date 

Cow milk deliveries remained relatively stable for the EU-27 over the past 3 years, with only 
small variations in percentage from one year to the other (+ 1% in 2008, - 0.6% in 2009, + 
0.03% in the first 7 months of 2010). 

The development of milk prices is shown in Annex I. Since the exceptional peak registered in 
2007,  farm  gate  milk  prices  have  come  down  following  the  decline  in  dairy  product  prices. 
After a slight  recovery between July and September 2008, prices fell to a low level in May 
2009,  a  bit  above  safety  net  levels  on  average.  Milk  prices  have  increased  from  May  2009 
until November 2009 and have stabilised around that level in the 1st quarter of 2010, contrary 
to the seasonal pattern that normally shows a decreasing trend during winter and spring. Milk 
prices  have  been  increasing  since  spring  2010  to  reach  about  31.5  c/kg  in  August  as  a 
weighted  average  for  the  EU-27.  For  an  overview  on  the  significant  variation  in  prices 
between Member States, please refer to Annex 2 comparing milk prices in August 2010 with 
those of August 2009 in the various Member States. 

Intervention  stocks  of  butter  and  skimmed  milk  powder  (SMP)  were  empty  in  2008,  but 
private/industry stocks have been increasing both for SMP and butter throughout 2007-2008, 
indicating  that  while  the  markets  were  bullish,  there  was  an  increasing  amount  of  EU  bulk 
product that did not find its way to the market. Intervention stocks grew rapidly in 2009 in the 
wake of a drop in demand. The deterioration of the market in 2009 created an incentive for 
dairies  to  turn  away  from  high  value  added  dairy  products  (like  cheese,  fresh  products, 

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yoghurts, etc.) towards intervention products (SMP and butter). In total, 76 367 t butter and 
256 982  t  SMP  were  bought  into  intervention  in  2009.  The  safety  net  proved  effective  to 
rebalance the market by withdrawing from the market products corresponding to 1 or 2% of 
overall milk production. Thanks to a significant recovery in butter prices at the end of 2009 
and in 2010 so far and favourable market developments for dairy products in general, there 
has been no buying-in into intervention in 2010 and intervention stocks are now nearly empty 
for butter and are gradually being reduced for SMP thanks to release under the most deprived 
persons' scheme and sales by open tender. The recovery in dairy commodity prices was due 
notably to reduced supplies from the Southern Hemisphere and better than expected recovery 
in world demand for dairy products. Improved market conditions have made dairies return to 
high value added dairy products. 

Developments in average EU prices for the main dairy commodities have been volatile from 
2008 till now. While prices were still at very high levels at the beginning of 2008, they fell to 
very low levels in the first half of 2009 and continuously recovered in the second half of 2009 
and first 3 quarters of 2010. 

EU  dairy  exports  experienced  a  drop  in  2008,  especially  for  butter  and  butteroil,  the  only 
major  exception  being  whole  milk  powder  (WMP).  The  trend  was  halted  in  2009  with  the 
introduction of export refunds to cover part of the increasing gap between world market and 
EU  prices.  EU  exports  recovered  in  the  first  months  of  2010  without  export  refunds  due  to 
increased world demand. 

1.2.  Medium term market development 

Medium-term  market  prospects  for  the  EU  have  been  simulated  with  the  Aglink-Cosimo 
model.  The  world  market  and  policy  environment  is  based  on  the  OECD-FAO  Agricultural 
Outlook  2010-2019,  applying  latest  available  macro-economic  projections  and  assuming  no 
changes in the CAP following the Health Check decisions and no changes in trade policies. 
Some of the most important drivers of the market projections are the improved GDP growth 
prospects, the assumption about a gradual strengthening of the Euro versus the US Dollar and 
the  OECD-FAO  world  market  price  projections1  for  dairy  commodities.  If  any  of  these 
projections/assumptions  do  not  materialise,  this  would  affect  the  resulting  projections 
significantly.  Furthermore,  greater  price  volatility  expectations  are  not  incorporated  into  the 
Aglink-Cosimo model. 

Based  on  this  model  and  the  above  mentioned  assumptions,  milk  production  is  projected  to 
return to an increasing path from 2011 onwards, driven by a fairly optimistic demand outlook 
based on improved macroeconomic prospects. EU-27 milk production in 2020 would exceed 
the  2009  level  by  about  3%.  Milk  deliveries  would  be  expected  to  increase  by  a  slightly 
higher rate, the difference being due to a gradually declining on-farm consumption in the EU-
12. In the context of quota abolition, the EU-27 milk production is projected to depict a very 
modest reaction to the end of the quota regime with EU deliveries (see graph 2 of Annex 3). 

The outlook appears favourable for higher value added dairy commodities, driven by growing 
demand  for  cheese  and  fresh  dairy  products.  Production  of  fresh  dairy  products  (including 
drinking milk, cream, yoghurts, etc.) is projected to increase by about 8% (from 2009 to 2020) 
and  cheese  output  is  depicted  to  grow  by  about  10%.  Prospects  for  cheese  exports  can  be 
deemed  as  favourable,  notwithstanding  an  assumed  gradual  strengthening  of  the  Euro 
currency, with the EU maintaining a steady share in global cheese exports above 30%. 

1 

In  the  OECD-FAO  Agricultural  Outlook  2010-2019,  world  market  prices  are  based on  Oceania  price 
quotations. 

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With regard to WMP, production is projected to fall only marginally below the 2009 level and 
EU  exports  would  remain  firm  over  the  medium  term,  driven  by  firm  global  demand. 
Nevertheless, the EU market share of global exports would decline gradually to 21% by 2020 
(from 24% in 2009). 

The  outlook  depicts  continued  market  stability  for  butter  but  conditional  on  firm  domestic 
demand. The increase in projected production for 2015 (year of quota abolition) would lead to 
an increase in EU exports. 

SMP export perspectives are less favourable given the assumed strengthening of the Euro and 
strong  supply  from  other  exporters.  Despite  the  relatively  favourable  outlook  and  apparent 
market stability for SMP, the nearer term prospects remain sensitive to global supply-demand 
developments and the EU market's ability to absorb the release of intervention stocks. 

Corresponding graphs are attached in Annex 3. 

2. 

EVOLUTION IN TERMS OF SMOOTHLY PHASING OUT THE MILK QUOTA SYSTEM 

2.1.  Milk production below quota 

The  Council  decided  to  increase  milk  quotas  by  2%  on  1  April  2008.  The  Health  Check 
decisions  of  November  2008  resulted  in  an  annual  increase  in  milk  quotas  by  1%  over 
5 consecutive years, beginning on 1 April 2009, plus an adjustment of the fat correction factor 
which resulted in a further de facto 1% increase in quotas. There remains 3 times 1% annual 
increase until the expiry of the quota system on 1 April 2015 (except for Italy where it was 
decided to frontload the 5% increase already as of 1 April 2009). 

Year on year, milk quotas are gradually becoming less relevant, as milk production falls short 
of  quota  in  an  increasing  number  of  Member  States.  While  surplus  levy  had  to  be  paid  by 
6 Member  States  in  quota  year  2008/09,  only  3  are  on  course  to  pay  one  in  quota  year 
2009/10. According to official notifications by the Member States, the 2009/10 quota year is 
estimated to have ended with EU milk deliveries approximately 7% under quota (see graph in 
Annex 4). 

EU milk production grew only marginally in 2008 despite the 2% quota increase decided for 
the  2008-09  quota  year  and  the  relatively  favourable  milk  price  paid  to  producers  over  the 
calendar year. The economic recession impacted negatively EU and global demand for value 
added  dairy  commodities,  which  put  dairy  product  prices  under  pressure  and  led  to  a 
significant fall in milk producer prices in 2009. These low milk prices contributed to a slight 
contraction  in  EU  milk  production  in  2009  and  early  2010.  As  a  consequence,  the  2008-09 
quota  year  finished  with  a  record  undershoot  of  EU  deliveries  in  relation  to  quota.  This 
undershoot increased even further in the 2009-10 quota year. EU milk production recovered 
in the course of 2010, but remained significantly below quota level. 

The slow response to quota increase is linked to economic recession, which triggered lower 
demand for dairy products, but also to higher production costs and resulting lower margins. 
Experience gained from the impact of the 2008/09 quota increase indicates that the response 
of milk production at the aggregate EU level remained fairly modest, despite a significantly 
higher  average  producer  price  for  milk.  Latest  figures  until  July  2010  show  a  stronger 
production response to increased milk prices. 

Milk  quotas  becoming  less  and  less  relevant,  EU  milk  supply  can  better  respond  to  market 
opportunities, farmers' response to price signals is less distorted and efficiency gains can be 
achieved through restructuring. 

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In Member States where the quota continues to be exceeded, this is probably due to the fact 
that certain producers have a sufficient margin over their costs to take the risk of an overshoot 
of  deliveries,  and  fully  use  their  capacity,  hoping  that  others  would  not  use  theirs  fully. 
Increasing production, even attracting a lower price, is seen as necessary by those farmers to 
cover  their  investment  costs  as  long  as  prices  cover  marginal  production  costs.  For  some 
Member States whose dairy processing sector is export oriented, it is also linked to the fact 
that their product mix allow them to produce for export markets and find an outlet for their 
products. 

2.2. 

Decreasing milk quota prices 

One of the main signals that a "soft landing" is on track is the gradual erosion of the "quota 
rent". The quota rent is defined as the difference between the price under quota (higher than 
market price when quotas are binding) and marginal costs of production. A good indicator of 
the quota rent is the quota price. As detailed in Annex 5, the milk quota price is decreasing 
with  the  shortening  life  of  the  quota  regime  and  is  already  low  or  close  to  zero  in  a  vast 
majority of Member States. The situation may be seen from 3 perspectives: 

1) Member States whose milk deliveries are well below the quota ceilings 

In  Member  States  whose  milk  deliveries  are  well  below  quota  ceilings,  the  quota  price  is 
already very low or even equal to zero. In some of them, national administrative arrangements 
have been adopted to fix a decreasing quota price year on year to reach zero in 2015. 

Provided  production  levels  follow  recent  trends,  for  those  Member  States  where  the  quota 
price is not fixed administratively but is already very low or equal to zero, quota prices are not 
expected  to  vary  much  from  current  levels.  In  Member  States  where  there  is  a  market  for 
quotas,  there  is  still  a  price  for  milk  quotas  notwithstanding  the  fact  that  no  surplus  levy  is 
paid. Once closer to 2015, all quotas would lose value completely as their significance to the 
market diminishes and the writing-off term becomes shorter. 

2) Member States whose milk deliveries are close to the quota ceilings 

In  Member  States  whose  milk  deliveries  are  close  to  the  quota  ceilings,  the  quota  price  is 
influenced  by  the  prediction  or  expectation  of  the  surplus  levy.  In  case  of  under  use  of  the 
national  milk  quota,  quota  prices  decline.  In  the  future,  quota  purchases  are  predicted  to  be 
further declining towards zero, with fluctuations due to surplus production and milk prices. 

3) Member States whose milk deliveries exceed quota 

In  the  limited  number  of  Member  States  whose  milk  deliveries  exceed  quota,  quota  prices 
remain relatively high and have recently increased. In these Member States, producers appear 
to be sufficiently competitive or obliged to fully use their capacity to continue producing, and 
ultimately  paying  a  surplus  levy.  In  those  Member  States,  a  soft  landing  may  not  be 
guaranteed. 

2.3. 

Expected evolution and sensitivity analysis 

The evolution of milk production after quota abolition depends on various factors: the shape 
of  the  CAP  after  2013  (market  measures,  direct  payments,  rural  development),  production 
costs, environmental obligations, alternatives in terms of job and production, evolution on the 
national and international milk markets including milk prices. 

According  to  the  econometric  model  used  in  DG  AGRI  to  produce  medium  and  long  term 
prospects, the increase in milk production is projected to remain modest in the coming years, 
even  after  the  abolition  of  the  quota  regime  (see  point  1.2  above).  Some  national  studies 
suggest potential big increases in milk production; however most of them do not take account 

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of  the  whole  EU-27  picture.  Structural  surpluses  should  be  avoided  thanks  to  the  price 
mechanism. Various studies2 carried out in the context of the Health Check show that only a 
limited number of Member States are expected to fully use increasing milk quotas for various 
reasons, while most Member States are expected to produce less, due to the expected overall 
decrease in milk prices. 

2.4.  Member States on track for “soft landing” 

Both the evolution of milk production versus milk quotas, and the downward trend in quota 
prices show that the “soft landing” is on track. In the vast majority of Member States, quotas 
are no longer relevant to restricting production and the quota price has already reached zero or 
is on course to reach it. 

As part of the  Health  Check  and  in the context of quota abolition, the milk sector has been 
added  to  the  so-called  "new  challenges"  under  the  second  pillar  of  the  CAP,  where  the 
increase in modulation funds was to target these new challenges. This is providing for further 
support to dairy farmers in preparing for the end of quotas. 

3. 

CONCLUDING REMARKS 

The milk sector went through a period of high price volatility from 2007 to 2009. Since then, 
the market situation has improved and prospects are broadly positive. 

Overall,  the  milk  sector  is  gradually  heading  towards  more  market  orientation.  The  process 
has  been  affected  by  the  economic  crisis  in  2008  and  2009.  Volatility,  which  is  a  standard 
phenomenon  in  a  market  oriented  sector,  has  become  more  pronounced  and  therefore 
damaging  due  to  the  convergence  of  exogenous  factors,  among  which  the  fall  in  household 
consumption for lack of purchasing power in the wake of the economic crisis. 

"Soft landing" is on track in an overwhelming majority of Member States. Milk quota prices 
have a very low value, already at zero in some Member States, and decreasing in most of the 
others with a view to reach zero in 2015. Milk quotas have ceased to work as a production 
limit in most Member States, especially in the new Member States, and market orientation is 
already the leading principle in a number of them. 

The conclusion is that under these circumstances there is no reason to revisit the Health Check 
decisions  with  regard  to  the  gradual  increase  in  quotas  and  the  end  of  the  quota  regime  on 
1 April 2015. 

In order to further pave the way towards quota abolition in 2015, the Commission would like 
to  raise  for  consideration  a  further  step  to  assist  in  the  process  of  soft  landing:  in  order  to 
increase  awareness  and  reinforce  the  responsibility  of  operators  in  the  dairy  chain  to  better 
take  into  account  market  signals  and  adapt  supply  to  demand,  transparency  should  be 
enhanced,  as  pointed  out  by  the  High  Level  Group  on  Milk.  In  addition  to  the  information 
systems  already  in  place,  meetings  would  be  organised  for  the  experts  of  the  Management 
Committee  for  the  single  CMO  jointly  with  the  Advisory  group  on  milk  to  follow  market 
developments in order to assess the market situation and prospects. 

In  case  of  serious  imbalance,  as  a  further  tool  to  stabilise  the  market  and  as  an  exceptional 
measure  if  other  measures  available  under  the  single  CMO  appeared  insufficient,  the 

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Economic  analysis  of 
(http://ec.europa.eu/agriculture/analysis/external/milk/index_en.htm) 
Economic Impact of the Abolition of the Milk Quota Regime – Regional Analysis of the Milk Production 
in the EU (http://ec.europa.eu/agriculture/analysis/external/milkquota/index_en.htm) 

the  EU  milk  quota 

effects  of 

expiry  of 

system  

the 

the 

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Commission could consider a system based on Article 186 of the single CMO ("disturbance 
clause")  that  would  allow  milk  producers,  on  a  voluntary  basis,  to  reduce  their  deliveries 
against  compensation.  Experience  gained  during  the  milk  crisis  shows  that  it  may  be 
sufficient to take 1 or 2% of overall milk production out of the market to correct imbalances 
and restore stability, as mentioned under point 1.1 above.3 

A further report will be tabled by the end of 2012. 

Annexes: I. Milk price development  

II. Farm gate milk prices in the various Member States 

III. Medium term prospects in the dairy sector 

IV. Milk production versus quota 

V. EU milk quota price development 

3 

The evaluation of such a scheme, including its financial impact, will be undertaken at the time of the 
presentation of a possible proposal. 

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ANNEX I : 1. Milk price development 

EU-15  EU-25 

EU Milk price 

282

263

244

in EUR/tonne

(EU - Aug 2010)

315

316
(World - 
Sep 2010)

225

220

215

World Milk Equivalent Price
(based on average quotations of Butter and SMP)

EU milk equiv. 
support price 
(based on SMP and 
Butter Intervention 
prices )

425

400

375

350

325

300

275

250

225

200

175

150

125

100

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/

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        2000         2001         2002         2003         2004         2005         2006         2007         2008         2009         2010         2011

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ANNEX II : Farm gate milk prices in the various Member States 

August 2010 / August 2009 

EU Milk Prices
(August 2010 compared to August 2009) 

Milk Price 2009

Milk Price 2010

51.4

41.8

39.3

36.8

35.1

34.1 33.8

32.8 32.2 31.9 31.9 31.8 31.5 31.1

29.9

29.1 28.6 28.1 27.6 27.2 27.1 27.0 26.8 26.6

25.3

24.4

22.9

21.2

CY MT FI EL SE FR NL IT DK IE AT DE EU
27

BE LU UK ES CZ EE PL PT SK BG SI HU LV LT RO

54

50

46

42

38

34

30

26

22

18

14

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ANNEX III : Medium term prospects in the dairy sector 

Graph 1. Milk supply and herd size 

EU-12

EU-15

EU-25

EU-27

Milk Production

Dairy cow herd

projection period

Milk Delivered to dairies

EU-10

EU-12

EU-12

EU-15

)
t
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180

160

140

120

100

80

60

40

20

0

45

40

35

30

25

20

15

10

5

0

1
9
9
1

2
9
9
1

3
9
9
1

4
9
9
1

5
9
9
1

6
9
9
1

7
9
9
1

8
9
9
1

9
9
9
1

0
0
0
2

1
0
0
2

2
0
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2

3
0
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2

4
0
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2

5
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6
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Graph 2. Prospective milk supply development versus quota 

projection period

150.44

milk deliveries to dairies

milk quota evolution

138.97

138.32

139.61

s
e
n
n
o
t

n
o

i
l
l
i

m

154

149

144

139

134

129

2007

2008

2009e

2010f

2011f

2012f

2013f

2014f

2015f

2016f

2017f

2018f

2019f

2020f

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11.0

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

2.5

2.3

2.1

1.9

1.7

1.5

1.3

1.1

0.9

0.7

0.5

Graph 3. Cheese market balance 

EU-12

EU-15

EU-25

EU-27

Production

Consumption

projection period

Exports

Imports

1
9
9
1

2
9
9
1

3
9
9
1

4
9
9
1

5
9
9
1

6
9
9
1

7
9
9
1

8
9
9
1

9
9
9
1

0
0
0
2

1
0
0
2

2
0
0
2

3
0
0
2

4
0
0
2

5
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6
0
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7
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f
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0
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Graph 4. Butter market balance 

EU-12

EU-15

EU-25

EU-27

Production

Consumption

projection period

Intervention Stocks

Imports

Exports

1
9
9
1

2
9
9
1

3
9
9
1

4
9
9
1

5
9
9
1

6
9
9
1

7
9
9
1

8
9
9
1

9
9
9
1

0
0
0
2

1
0
0
2

2
0
0
2

3
0
0
2

4
0
0
2

5
0
0
2

6
0
0
2

7
0
0
2

8
0
0
2

e
9
0
0
2

f
0
1
0
2

f
1
1
0
2

f
2
1
0
2

f
3
1
0
2

f
4
1
0
2

f
5
1
0
2

f
6
1
0
2

f
7
1
0
2

f
8
1
0
2

f
9
1
0
2

f
0
2
0
2

2.2

2.0

1.8

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

e
d
a
r
T

1.0

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

s
k
c
o
t
S

,

e
d
a
r
T

EN 

12 

   EN 

 
 
 
 
 
n
o
i
t
p
m
u
s
n
o
C

,

n
o
i
t
c
u
d
o
r
P

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

Graph 5. SMP market balance 

EU-12

EU-15

EU-25

EU-27

Production

projection period

Exports

Imports

Intervention Stocks 

Consumption

1
9
9
1

2
9
9
1

3
9
9
1

4
9
9
1

5
9
9
1

6
9
9
1

7
9
9
1

8
9
9
1

9
9
9
1

0
0
0
2

1
0
0
2

2
0
0
2

3
0
0
2

4
0
0
2

5
0
0
2

6
0
0
2

7
0
0
2

8
0
0
2

e
9
0
0
2

f
0
1
0
2

f
1
1
0
2

f
2
1
0
2

f
3
1
0
2

f
4
1
0
2

f
5
1
0
2

f
6
1
0
2

f
7
1
0
2

f
8
1
0
2

f
9
1
0
2

f
0
2
0
2

Graph 6. World market price projections 

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

s
k
c
o
t
S

,
e
d
a
r
T

3 500

3 000

2 500

2 000

1 500

1 000

500

0

n
o
t
/

projection period

cheese

butter

SMP

2003

2005

2007

2009e

2011f

2013f

2015f

2017f

2019f

EN 

13 

   EN 

 
 
 
€
  
ANNEX IV : Milk production versus quota  

EU Deliveries Overshoot/Under use (in % of quota) 

DK NL CY LU AT DE BE

IT

PL ES PT FR IE

SI

FI UK CZ EE BG LV EL SE MT SK HU LT RO

%
4
.
0
+

%
4
.
0
+

%
3
.
0
+

%
9
.
0

-

%
5
.
1

-

%
1
.
2

-

%
7
.
3

-

%
7
.
3

-

%
4
.
4

-

2007/08

2008/09

2009/10 p

%
1
.
6

-

%
7
.
7

-

%
8
.
8

-

%
3
.
0
1

-

%
5
.
0
1

-

%
5
.
0
1

-

%
1
.
2
1

-

%
3
.
2
1

-

%
7
.
2
1

-

%
7
.
3
1

-

%
1
.
5
1

-

%
5
.
7
1

-

%
7
.
7
1

-

%
7
.
9
1

-

%
7
.
0
2

-

%
6
.
2
2

-

%
7
.
4
2

-

+ 5%

+ 0%

- 5%

- 10%

- 15%

- 20%

- 25%

- 30%

- 35%

- 40%

- 45%

%
6
.
7
3

-

y
t
i
t
n
a
u
Q
e
b
a

l

l
i

a
v
A

f
o
%
n

i

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Evolution of EU Milk deliveries and Direct sales versus quota

Fat correction

Total EU Direct sales

Total EU Deliveries (not incl. fat correction)

Total Quota (Deliveries + Direct Sales)

0
0
8
7
1
1

9
7
8
3
1
1

6
9
-
5
9

0
4
9
7
1
1

6
7
8
3
1
1

7
9
-
6
9

4
2
1
8
1
1

4
4
2
4
1
1

8
9
-
7
9

2
1
0
8
1
1

1
6
0
4
1
1

9
9
-
8
9

4
8
2
8
1
1

5
6
7
4
1
1

0
0
-
9
9

6
5
2
8
1
1

4
7
5
4
1
1

1
0
-
0
0

3
5
2
9
1
1

2
6
4
5
1
1

2
0
-
1
0

5
1
3
9
1
1

1
5
8
5
1
1

3
0
-
2
0

4
5
3
9
1
1

8
4
9
5
1
1

4
0
-
3
0

4
2
2
0
4
1

0
6
2
0
4
1

0
5
1
7
3
1

8
0
5
6
3
1

5
8
2
6
3
1

2
0
6
2
3
1

5
2
8
2
3
1

7
2
0
5
3
1

2
9
1
5
3
1

8
2
4
4
3
1

7
4
5
6
2
1

1
5
6
2
2
1

5
0
-
4
0

6
0
-
5
0

7
0
-
6
0

8
0
-
7
0

9
0
-
8
0

*

0
1
-
9
0

1
1
-
0
1

2
1
-
1
1

3
1
-
2
1

4
1
-
3
1

5
1
-
4
1

p : provisonal deliveries

EU milk deliveries (including fat correction) and direct sales

EU15

EU NMS

136 508

136 285

119 253

119 315

119 354

119 373

EU NMS
17 588

EU NMS
17 752

140 224

140 260

EU NMS
21 038

EU NMS
21 380

EU15
119 253

EU15
119 315

EU15
119 354

EU15
119 373

EU15
118 919

EU15
118 534

EU15
119 185

EU15
118 880

118 256

EU15
118 256

155 000

150 000

145 000

140 000

135 000

130 000

125 000

120 000

115 000

110 000

105 000

100 000

s
e
n
n
o
T
0
0
0
1

137 150

EU NMS
20 050

EU15
117 100

160 000

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

s
n
o
T
s
d
n
a
s
u
o
h
T

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10 *

Quota years

* provisional

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNEX V : . EU milk quota price development 

Quota Prices in Cent/kg

CY

NL

140

120

100

80

60

40

20

0

DE

UK

FR

DK

2005

2006

2007

2008

2009

2010

* includes : AT, BE, BG, CZ, EL, ES, FI, HU, IE, IT, LT, LU, LV, PL, PT, RO, SE, SI.

EN 

16 

   EN