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Die Presse - Austria | Wednesday, April 1, 2015

Dairy farmers' fears exaggerated

Fears about the negative consequences of the abolition of the milk quota are unfounded, the conservative daily Die Presse comments: "Now everyone's moaning that the end of the quota will 'raise production costs'. ... There has long been plenty of evidence that by forcing producers to become more efficient, market pressure (if you allow for such a thing, that is: farmers are still light years from that) doesn't raise production costs but rather lowers them. ... Exports should make up for the large increase in domestic production. ... For example to China. There, however, the Austrians fear competition from New Zealand. Strange: New Zealand abolished farm subsidies long ago, and so it must be in far worse a position than the doubly subsidised (that is for growers and dairy farmers) EU milk."

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