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Romanian Farmers Lose Milk Quota Over Failure To Submit Reports

Nearly 15% of the Romanian farmers who benefited from milk quotas in 2007 had their quotas removed for failing to submit a yearly report regarding the milk sold, the agency of payments and interventions in agriculture APIA said Tuesday.
Romanian Farmers Lose Milk Quota Over Failure To Submit Reports
09 sept. 2008, 18:31, English

It said 92,867 producers who benefited from milk quotas for direct sales failed to submit the yearly reports by mid-May. Their quotas, totaling 201,227.823 tons, will go to the national reserve.

“Most of them were small farmers, who will be able to maintain production for personal consumption. By withdrawing their quotas, the respective milk quantity will not go to waste. It will be transferred to the national reserve and it may be used for producers who invest in new farms, said Valeriu Steriu, president of the Romanian Dairy Processors Organization, or APRIL.

Romania implemented for the first time the milk quota system in the 2007-2008 year.

The country did not exceed its national quota allocated by the EU, of some 3 million tons, so no penalties were imposed against it (farmers whose production exceeds their quota have to pay a levy of EUR278.3/ton for the extra milk delivered).

For the year 2008-2009, the European Commission set a milk quota for Romania of EUR3.11 million tons, up 2% compared to the previous year.

The national quota is bound to see additional hikes in the next two years, as the Commission proposed the member states are to receive increased quotas of 1% yearly until the system is eliminated.