Auditors say milk quotas too high

EUROPEAN Union milk quotas have been too high for a long time, according to the European Court of Auditors.

The independent guardian of the financial interests of the citizens of the European Union said EU dairy policy aims for market equilibrium, stable prices, a fair standard of living for farmers, and improving the competitiveness of European milk products.

However, the price paid to farmers fell continuously since 1984 in real terms, and the European Union-15 lost half its dairy farms between 1995 and 2007, with more than 500,000 giving up.