Milk production in Austria, Cyprus, Denmark, Germany, Italy, Luxembourg and the Netherlands has been higher than expected.Policing a cartel is never easy! The good news that Homepaddock notes is that,
That ought to be cause for celebration in a world we keep being told is short on food and where developing countries are hungry for protein.
But no, they will be fined a total of €221m because they exceeded their annual quota.
What makes it even sillier is that 14 countries produced less than their quota and total EU production was 6% lower than quota.
The quota system is to be phased out as part of reforms to the Common Agricultural Policy which aim to end government protection for the dairy industry.If there is any part of the EU economic system that needs reform - that is, to be done away with - it is the CAP. The EU could do worse that to learn from New Zealand, there is life after subsidies and protection.