Milk quotas in the United Kingdom
Former cap on untaxed sales of milk
A milk quota or dairy produce quota was a historical measure used by the United Kingdom government to intervene in agriculture. Originally introduced to reflect the agricultural policies of the European Economic Community, the quota's purpose was to bring rising milk production under control. Milk quotas were attached to land holdings and represented a cap on the amount of milk that a farmer could sell every year without paying a levy. Milk quotas were assets and could be bought and sold or acquired or lost by other means and so there was a market for them.
Milk quotas were withdrawn on 31 March 2015.
History
Milk quotas were first introduced in the United Kingdom on 2 April 1984 under the Dairy Produce Quotas Regulations 1984, which reflected the then European Economic Community (now the European Union's) Common Agricultural Policy. Originally, they were to run until 1989, but they were extended several times, and were not renewed for the period following 31 March 2015.
Each member of the European Economic Community was allowed to produce dairy products up to a cap, which was based on each state's 1981 production, plus 1%. The cap was designated the "reference quantity". A levy to the EEC was due on production in excess of the reference quantity.
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