Incentives for limiting volumes are now finally being discussed on a political level, too. In late February, French Minister of Agriculture Le Foll submitted a detailed model for reducing volumes through a voluntary restraint on supply, and elaborated three different options (including a binding reduction in volumes in the member states).

German Minister of Agriculture Schmidt is also getting into gear: this week Germany and France drew up a joint raft of demands for the milk market and pig market, to be presented to the European Ministers of Agriculture on 14 March. This includes the introduction of measures for a voluntary volume restriction for milk producers and dairies, to enable an effective rise in prices by controlling the supply of milk, supplemented by financial aid from the EU.

EU Commissioner for Agriculture Hogan is also now prepared to address voluntary supply management in the milk market in times of falling prices (under Article 222 of the CMO). He appears receptive to the approach that incorporates producer organisations and co-operatives in this supply management system.