Analysts fear that EU milk quotas could have disastrous consequences

The result of consultations with the European Union (EU) on agricultural production quotas, scheduled to start on Tuesday, will have a big influence on the future prices of milk and sugar. The European Commission has an nounced that it will be flexible with the quotas, however it does not promise any miracles. Every change will require it to be backed up by hard facts and solid arguments. "We should not expect any binding decisions, what we need at this stage is an exchange of arguments," one Polish EU negotiator told Gazeta Wyborcza. The issue of quotas on milk and sugar production should be discussed after Poland is offered subsidies on agriculture as limiting production is rewarded by EU subsidies. However, for the consumer the issue of production quotas is far more important than a political battle over direct subsidies. Polish analysts warn that if the EU pushes its quota on milk through, then several years after Poland joins it, milk will have to be imported, and consequently will cost more. Therefore negotiators with the European Union have declared that they will take a tough stance on talks to ensure larger quotas on milk and sugar than the one offered by the EU. (Gazeta Wyborcza, p. 20) A.Z.