Analyst sounds death knell for quotas

QUOTAS will effectively become valueless with their production rights incorporated into an income entitlement per hectare under the proposed CAP reforms, a stockbroking analyst predicted yesterday.

Paul Meade, NCB Stockbrokers, also claimed the proposed expansion of dairy quotas signals higher milk volumes for processing leading to their eventual elimination.

He said the EU is removing support from the bulk commodities like skim milk powder and butter which will force the sector to produce more added-value products like cheese and casein. The Commission is proposing to extend the quota system until 2015.