Common Agricultural Policy
Agricultural underproduction in the 1950s led to a series of market interventions, including the Common Agricultural Policy. Governments subsidized milk production by a guaranteed minimum intervention price for dairy products. This led to a surge in the production of grain, milk, butter and related products until production exceeded demand in the late 1970s, resulting in a glut. Milk production in West Germany alone increased from 75 million tonnes in 1960 to nearly 100 million tonnes by 1979. To combat the overproduction, governments introduced milk quotas, which were governed by the Common Agricultural Policy.