The agricultural policy of the UE and Poland

Table of contents:

•Packages designed to stabilize the market •Classification compared to other EU countries •milk quotas •purchasing prices for raw milk •Production quotas for milk •The largest exporters of milk in the EU •Expenditure on direct payments market stabilization

Polish dairy policy and the European Union

Politics (in gr. Polly - plurality, diversity, polis - the city state) - concept of relevant social sciences, understood in many ways .

Milk - secretion obtained from the mammary gland of female mammals during lactation. For human nutrition the most important is cow's milk. It also provides the key ingredient in the food industry.

MILK AND MILK PRODUCTS

Dairy group includes: milk, fermented beverages,cheese, cottage cheese and rennet cheese (yellow). They are among the most valuable food products. They contain almost all nutrients necessary for the proper functioning of the body. Therefore they can not be replaced by any other food products.

The Common Agicultural Policy

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All projects related to agriculture in the European Community, in order to complay with regulations and Laws recorded in Rome, include: agriculture, forestry, wine growing and horticulture. It is the first common EU agricultural policy.

Packages designed to stabilize the market What is the problem:

• In the aftermath of the crisis that affected the market in 2009, when farmers poured milk into the fields and streets, the European Commission proposed a package of measures that will: • Help stabilize the market, supply and demand balance through improved contractual relationship between farmers.

• Help stabilize farmers’ income, to strengthen the common position of farmers in relation to prospective buyers of milk and milk products.

•Enhance the transparency in milk supply chain.

What exactly will change with the package Formal agreements will encourage all operators in the milk to Pay more attention to what the market needs.

Better respond to signs of change in the market, adapt to a grater extent the wholesale and retail milk prices, and profits for the farmers.

A common negotiating position of milk producers will be stronger, because they will negotiate prices and contracts with a producer organization.

Benefit the farmers producing milk and the milk supply chain.

The proposed amendments may take effect in 2012.

Purchasing prices for raw milk

Production quotas for milk

Production quotas for milk are the main instrument for managing the common market. Quote of milk production in the European Community introduced 1984roku. The main objective was to increase milk production restraint Production quotas for milk i 1995-1998

EU Countries 1995/96 1996/97 1997/98

Belgium Denmark Germany Greece France Ireland Italy 3310 4455 27865 631 24236 5246 9930 3310 4455 27865 631 24236 5246 9930 3310 4455 27865 631 24236 5246 9930

Changes in the milk market

In addition to the introduction of production quotas for Poland deep changes will affect the whole milk market, which is best shown by the introduction of Lawson market regulation for milk and milk products from 6 September 2001 which will adapt Poland to the EU requirements.

What happens if you produce too much milk

The granting of individual quota for production entails certain consequences for the person who recived it. First of all – Farmer can not produce more than the amount allowed by production quota. For farmers who try to avoid the ban and put on the market more milk than they are allowed to a special „surprise” has been prepared. It is the financial penalty, which they will have to pay to the account of the Agricultural Market Agency. Poland can’t also exceed the national production limits of milk or it will have to bear the financial consequences for the European Union.

Farmers have not used up milk production limits in Poland

This year Polish farmers didn’t use up all the production quota allowed. Polish farmers could produce more than 9.76 bilion kg of milk, including 9,6 bilion kg produced by wholesale manufactures. Wholesale manufacturers are the farmers who supply milk in large grautities to big dairies. 157 thousand kg could be produced by other farmers who sell milk in small amounts for example to their neighbours.

According to the agency, which has just sunmed up last year’s quota at the end of March 2011. 183 thousand milk farms were engaged in milk production in Poland and out of that 168 thousand supplied just milk to be further processed in dairies .

The largest exporters of milk in the EU

The largest exporters of milk and its products in the Eu in 2012 are in the category Skimmed milk powder (SMP), France, Germany, Poland Whole milk powder (WMP),Germany, France Fresh cheeses – Germany,France, Poland Ripened cheeses – Germany, France, Italy, Netherlands, Poland

Important information

• Milk production is important for the economy in Poland, which is the fourth after Germany, France and the UK, milk producer in the European Union. Polish farmers produce more than 8% of European milk amount .

Expenditure on direct payments to stabilize markets Expenditure on stabilizing markets and direct payments (in millions of euros) in EU

Total direct payments market support developmend of agricurtural

2004

44719 25970 18748 6462 Total direct payments market support 100,0 58,1 41,9

2005

48928 33701 33701 6828 100,00 68,9 17,2

2006

49865 34051 34051 7690

2007

53694 37779 3779 10495 Percentage % 100,0 100,0 68,3 16,2 70,4 10,1

2008 2009

52387 51477 36832 3779 36832 37779 11522 10288 100,0 70,3 7,7 100,0 73,4 6,6

Contaminated Milk in Poland

Chief sanitary inspector Andrzej Wojtyła, ordered that inspectors pay particular attention to the possible presence of milk of unknown origin in the shops.

-Although to none of the EU countries, including Poland milk is imported from China, it could happen that someone brought it on his/her own – said a spokesman for the Chief Sanitary Inspectorate Jan Bondar.

-The controllers during a routine checks test that the food busineses which sell powdered milk or use it in the production of cakes and sweets,have the appropriate documentatio N.

Interesting fact According to reports from authorities in Beijing, in China, after ingestion of contaminated milk 54 thousand children have developed signs of illness .

Milk production in Poland

More than two-percent reduction in the number of dairy cows kept by farmers and a slight increase in milk yield of cows caused a decrease in milk production in 2010 by 1.35% to 11 921 mln liters compared to 2009. IAFE NRI forecasts indicate a likely increase in milk production in 2011 by 1.2% and a return to the level of 12.06 bilion liters and to maintain this trend in 2012 in which production may exceed 12.1 bilion liters. This will be affected by improved performance and reduction of population dynamics of dairy cows .

THE END