The agriculture industry faces continuously changing markets with external and internal forces compelling those involved in the industry to adapt to the ever altering scenarios. Economic pressures continue to be one of the main driving forces in the endless need for adaptation on farms.
Policy developments throughout the last decades have placed increased financial, economic, and environmental pressure on agricultural production and producers. Internal developments on the farm such as productivity gains and technical advances have offset some of the economic pressures. Against the backdrop of these increasing economic, environmental, and policy pressures, farmers are forced to evolve into more efficient businesses.
As with any other tradable commodity, dairy and beef products face the potential for increases and decreases in both their demand and supply and as a result changes in their value on world markets. Agricultural products such as dairy commodities are traded worldwide and prices have fluctuated greatly on the commodity markets over the last number of years.
European policy agreements of the last decades, such as Agenda 2000 and the Mid Term Review, of the Common Agricultural Policy, resulted in a downward trend in the prices More recently the removal of export subsidies and price supports, as well as low intervention volume levels, has resulted in increased price volatility in European dairy markets.
Therefore Farm Policy plays a key role in the very make up of all farmer in Ireland today.
From 1984 the EU milk quota regime capped milk production at the individual farm-level. Since the EU production quotas ceased in the last number of years, the agriculture landscape has changed significantly, therefore current and future policy direction is of utmost importance to not only Dairy farmers but all farmers, consumers and industry.
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