THIRTY years after introducing quotas to combat the butter mountain caused by overproduction, the EU is on the cusp of freeing up the dairy sector amid growing global demand for milk products.
To see it doesn't all go sour for producers, Euronext recently announced plans to create futures contracts for several products to help them manage market fluctuations. Despite introducing the quotas in 1984 to grapple with chronic overproduction, the EU remains the world's top dairy producer and number two exporter.
Those caps will end on March 31, allowing Europe to tap the growing demand for milk products in emerging markets, in particular in China. But dairy farmers are worried a quick boom in production...