Abstract
The Milk Quota System was introduced in EC in 1984 in order to cut over production of milk and milk products and to solve the financial difficulties in the administrative budget. The system was determind to extend until 2000 when EC reformed the Common Agricultural Policy in 1992. During the period of 1984-91, the quantity of quota was reduced about six percents in average of member countries, while 15-16 percents in highly developed countries of dairy such as the United Kingdam, Netherlands and West-Germany.
The Dairy Farmer Outgoes Scheme was published by the EC Commission in 1985, which was designed to encourage milk producers to cease production permanently.
The purpose of this paper is to review the management of the milk quota system, and to percept the effect of the system to dairy farmers in selected member countries. The important results are summarized as follows; (1) the structual reform of milk production was accelerated by transfer of the quota from small and inefficient dairy farmers to large and efficient farmers. (2) this structual reform was achieved by dairy famers themselves without getting financial aids outside dairy industry.
