The European Dairy Sector in a new Era

While milk output in the EU has been constrained by milk quotas for 31 years, the quota system ceased as a constraint in April 2015. The paper describes the motivations for the removal of the milk quota system. The new era of milk output without quota constraints will result in both opportunities and challenges for the EU dairy industry. The opportunities will arise from the expanding global dairy market. The challenges will involve the ability of the EU dairy industry to achieve international competitiveness in servicing the increased global demand for dairy products. The paper examines these challenges and opportunities in detail. This paper will explore these issues with a primary focus on the prospects for the EU dairy industry over the next decade.