Tuesday, 08 November 2016 18:02

Paid more to do less

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Europe is trying to rein in milk production by its 52,000 dairy farmers by paying them to not produce milk.

Farmers have rushed to get the cash ‘carrot’ -- 150 million euro (NZ$233 million). Agricultural commissioner Phil Hogan predicts this will cause production to fall at least 2% by late 2016, after four years of continuous increase.

It’s a last resort, said an EU official, after an earlier attempt to rein in the farmers failed. Each farmer who applies will milk 20 tonnes less (average) and will get 2800 euros (NZ$4363) compensation.

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