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Solutions?
What can be done? Here are some
possibilities...
Click on each solution to find out more about it.
Does John get any help from the EU?
Contrary to what many people think, the European Union does
not give direct financial support to UK dairy farmers. Instead,
it takes steps to keep the milk price stable, by imposing quotas
(limits on the amount of milk each farm is allowed to produce),
in order to prevent any EU country from producing too much milk.
Because more milk is produced in the spring than the autumn,
the EU buys milk at this time of year and stores it as milk
powder. The EU also imposes import
tariffs on foreign
milk, in order to minimise competition from cheap imports.
In spite of the quota system, the EU does produce surplus milk
and, in order to remove it from the marketplace, it sells it
to other countries at low prices.
Supply and demand:
Remember that the law of supply and demand says that the
price of a product goes down as the availability of that product
increases. The EU tries to protect its farmers against low prices
by restricting supply. For more information about the economic
issues, read the issues.
Welcome to Wales
- Meet the family - Visit
the farm - John's day - Problems!
- Solutions? - The future |
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