13 October 1995

New French dairy outgoers scheme

FRANCE has introduced a new dairy outgoers scheme as part of its restructuring plan for the milk sector.

A report, in Agra Europe, says that producers who give up milk production before next April will receive 1.25 francs/litre (about 16p/litre) for up to 100,000 litres of quota. They are then entitled to 0.65 francs/litre (about 8p/litre) for quota between 100,000 and 150,000 litres, and to 0.4 francs/litre (about 5p/litre) for any quota above 150,000 litres.

The rules governing milk quota trading will also be revised.

Farmer groups and dairy companies are now submitting their proposals for new rules.

The revised scheme will retain the previous rule that quotas cannot be sold freely but must be linked to the land. A 10% siphon will be introduced, on all transfers, to fuel a national reserve, which will then be allocated to new entrants and developers.