More than 52,000 dairy farmers from 27 European Union (EU) member states have enrolled in a program to reduce milk production during the final quarter of 2016.
Under the €150 million ($168 million U.S. dollar) Milk Production Reduction Scheme, participating EU dairy farmers pledged to reduce overall milk production by 1.06 million tonnes (2.34 billion pounds) between Oct.1 – Dec. 31, 2016.
The volume reduction pledges offered vary by producer, but average 20 tonnes (44,090 pounds) per applicant. If realized, it would cut overall EU milk production by about 2.9 percent in the quarter.
To apply, a farmer must have agreed to reduce milk production by at least 1,500 kilograms (about 3,307 pounds) compared to the same period a year ago, to a maximum of 50 percent of their total milk production.
At the end of the three-month period, farmers will have 45 days (approximately mid-February) to provide proof they reduced production and are eligible for a €14 per 100 kilogram ($15.71 per 220 pounds or $7.14 per hundredweight) milk reduction payment.
Originally, the plan included four milk reduction periods: Oct. 1 – Dec. 31, 2016; Nov. 1, 2016 – Jan. 31, 2017; Dec. 1, 2016 – February 28, 2017; and Jan. 1 – March 31, 2017.
However, the high participation rate in the first round will use nearly 99 percent of available funding. As a result, funding for a second round of milk production reduction payments will be limited, and the program will be open only to those who did not apply for participation in the first round. The deadline to apply is Oct. 12.
The largest number of participating dairy farmers are in France (13,000), Germany (10,000), Ireland (4,500) and Austria and the Netherlands (each 4,000). In percentage participation rates, Ireland has a participation rate of 24 percent, followed by Belgium and the Netherlands (each 22 percent), France (19 percent) and Portugal (17 percent).
By country, total volume reductions under the first round range from 286,000 tonnes in Germany and more than 100,000 tonnes in France and the United Kingdom, to less than 1,000 tonnes in Malta and Cyprus.
“I am particularly pleased at the level of participation among the main dairy producing member states," said Phil Hogan, director of Agriculture and Rural Development for the European Commission. ”I am confident that this measure … will contribute further to an already stabilizing market situation in the European dairy market.”
The Milk Production Reduction Scheme was announced as part of a €500 million aid package for the EU dairy sector, which included an emergency support package worth €350 million. 
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Dave Natzke
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