Open-market milk quota transfer system may stoke up controversy
Permitting the capitalisation of milk quota was a fatal error, after which every twist or turn in the quota regulations has to be taken with extreme care.
The open-market milk quota transfer system due to be introduced in April, 2007, through which quota can be sold with or without land, or leased with land, has the potential to continue the controversy surrounding milk quotas since they were introduced more than two decades ago. EU courts have clearly defined that the intended operation of the milk quota was as a “licence to produce”, without value as an asset. The Commission may have erred in not spelling out the “licence” guidelines for member states.
