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Milk market relations and contracts

In 2012, the EU agreed to a revision of the CAP rules on contractual relations in the dairy sector, aimed at boosting the position of dairy farmers in the supply chain. This had its roots in the severe milk market crisis of 2009, during which dairy commodity prices fell significantly below production costs for a period of time. The new rules were also agreed in light of concerns about the possible market impact of the impending removal of production quotas in 2015.


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