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Farm minister calls for improving competitiveness after end of milk quotas

ZAGREB, March 27 (Hina) - Agriculture Minister Tihomir Jakovina on Friday called on Croatian dairy producers to boost their competitiveness and on Croatian consumers to be more aware of the importance of buying domestic products as measures that will help the Croatian milk sector to overcome the upcoming situation stemming from the fact that the European Union will revoke milk quotas on 31 March.

Milk quotas were first introduced on 2 April 1984 under the Dairy Produce Quota Regulations 1984, which reflected the then European Economic Community's Common Agricultural Policy. Originally they were to run until 1989, but they have been extended several times, and now will endure until at least 31 March 2015.

"We must enhance the competitiveness of our production, we must increase productivity per cattle unit, we must absorb EU funds, cattle breeders must establish associations," Jakovina said when asked by the press about the impact of the abolishment of the EU milk quota as of 1 April.

The minister promised help through providing more land to cattle breeders.

He noted that it had been known for a long time that the quotas would be removed.

This will create benefits for countries with developed dairy sectors. We must boost our competitiveness and raise the awareness of consumers that buying domestic products supports domestic production, Jakovina said.

The "Croatiastocar" association director, Branko Bonetic, said that the abolishment of the milk quotas was a challenge to the Croatian dairy sector as well as to the dairy sector in Europe, given that quotas had existed for 30 years to cushion the volatility of that market.

According to the European Commission's statistics, the number of dairy farms in the EU has been reduced by 200,000 in the past six years.

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