A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Reinventing regulation tools.

19 October 2009

In a special report published on October 15, the European Court of Auditors severely criticized the risks linked to the European Commission’s policy of liberalization of the agricultural markets. In examining the effectiveness of the management of the dairy market since the establishment of milk quotas in 1984 with regard to the main objectives set for the European Union dairy policy, the report concluded in particular that the market management tools, primarily quotas, have controlled production relatively well, and above all, have led to price stability. Compared with the pre-quota period, the nominal milk price at production has in fact varied only slightly between 1984 and 2006, thus highlighting the effectiveness of the policy in relation to this precise objective.

Without wishing to re-establish milk quotas, the European Court of Auditors has nonetheless recommended in its conclusion that “monitoring the development of the milk and milk product market should continue, so that liberalisation of the sector does not lead once again to over-production.” Within a context of dismantling milk quotas (planned since the 2003 Council), there is in fact every reason to believe that the Commission’s concern about making farmers more responsive to “market signals”, leads to overproduction when prices are high, thus causing even greater price instability. And that is the contrary of what the Commission is aiming for. What’s more, this report does not mention the real risks of shortage caused by liberalization of the sector - a situation that the European Union already experienced in 2007.

For a few months now, the crisis in the dairy sector has proven that we cannot do without market regulation policies. The political decision-makers have sought answers to the drawbacks of the regulation instruments implemented thirty years ago by doing the opposite of the polices in questions. Must we wait for the liberalization policy to permanently destabilize the sector to realize that instead of liberalization, we must reinvent the regulation tools?

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Paris, 24 April 2019