European dairy markets - trends and prospects.
1995
Krostitz W.
Europe is the world's largest milk producing region, although its share in the global total is decreasing. Up to the 1980s output was well above effective demand which required huge subsidies on domestic consumption and exports. However, in the early 1990s, demand and production contracted sharply in the former socialist contries. Adjustment in West Evrope has been slower. Further reductions in milk output and prices will, therefore, be required to restore equilibrium between supply and demand. But the average size of dairy farms and milk plants is likely to continue to increase. In the Eastern part of the continent, demand and production are expected to recover during the second half of the 1990s, accompanied by modernization and rationalisation of farming and marketing. Yet, average levels of consumption will probably remain much lower then in the past, with widening differences within the population.
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