Penalties for EU dairy overachievers

Seven European Union countries face penalties totalling 338,7 million euros (over R4 trillion) for exceeding their milk quotas during 2007/2008. The provisional calculation by the Commission is up from 222 million euros (R3 trillion) last year. Cow’s milk is marketed in the EU on the basis of quotas initially introduced in order to achieve a balance between supply and demand and curb surpluses. Each country receives two quotas, one for deliveries to dairies, the other for direct sales to consumers. Austria, Cyprus, Ireland, Italy, Germany, Luxembourg, and Netherlands exceeded their delivery quotas with a collective overrun of 1 217 000t. – Alan Harman