Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-09-17-Speech-4-025"
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"en.20090917.2.4-025"2
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"Many people have asked during this period, right from the start of the crisis, to freeze the increase in milk quotas. This type of measure would not only not provide a solution, but would be a mistake, at least from the following points of view.
First of all, there is no basic economic link between the increase in milk quotas and the fall in market prices. Quotas have increased, while production has fallen. I cannot see where the link is. The market itself offers the explanation for falling prices. I believe that setting fixed quotas would lead to a rise in prices over time. However, the beneficiaries will be, once again, not the producers, but the processors and retailers. If we want to limit production we should perhaps encourage producers to stop livestock rearing voluntarily, by providing incentives rather than measures which could distort the market. Assuming quotas are frozen, what is going to happen when, for instance, demand on the global market picks up again? What could European producers do? Because dairy production does not have a tap that we can just turn off and on…
As I was saying, what could European producers do, assuming demand on the global market picks up again? Because dairy production does not have a tap that we can just turn off and on willy-nilly. If we were to cut production now, farmers would obviously give up cow rearing, but it would be very difficult to replenish the livestock when we realise that what some people now imagine would be a good measure is, in reality, a big mistake."@en1
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