Price Controls in Europe?

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KeithM1116's picture
KeithM1116
Status: Bronze Member (Offline)
Joined: Sep 10 2012
Posts: 59
Price Controls in Europe?

I just ran across this story from November in the Telegraph.  Has anyone seen anything further on this?  I'm not sure where to post a discussion on this, but it seems we're going down the path of Atlas Shrugged - price controls do nothing but drive suppliers out of the market, making shortages even worse - and eventually creating black markets where actual "price discovery" can prevail.

Keith

http://www.telegraph.co.uk/news/picturegalleries/worldnews/9706213/Dairy-farmers-spray-milk-at-the-European-Parliament-in-Brussels.html

Nervous Nelly's picture
Nervous Nelly
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Joined: Nov 23 2011
Posts: 204
AndyG's picture
AndyG
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Joined: Feb 29 2012
Posts: 33
The EU has all sorts of

The EU has all sorts of regulations and price controls/distortions. This may 'unify' things across the Eurozone but adds extra costs to all sorts of businesses. It's all centrally driven and very socialist. [I live in the UK]. It impacted our Dairy Farmers to the point where they were giving up in droves. supermarkets weren't helping in offering less that production costs. Eventually here in the UK heads were banged together and a compromise was sorted - ie supermarkets offered higher prices for the milk. An on going struggle for Dairy Farmers in the UK however. Feed prices are going up and its harder and harder to pass extra costs onto the consumer. something will give somewhere.

The UK is definitely drifting further away from the EU.

cappe_74's picture
cappe_74
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Joined: Oct 9 2008
Posts: 3
milk quotas

Milk Quotas have put every producer on its knees all through europe. I ask myself who is benefitted by such an idiot idea... Nestlé? 
not the consumer not the producer

Magnum03's picture
Magnum03
Status: Bronze Member (Offline)
Joined: Dec 14 2012
Posts: 31
Who benefits

The beneficiaries of the EU agricultural subsidies are the biggest farmers and the people who sell agricultural supplies, like machines and fertilizers.

The scheme is set up in such a way, that the more land you have the more you get and like it was mentioned earlier, the prices of production are going up. So in order to run profitable farm, you need to have enough land to get sufficient subsidies to pay for the production.

The system is virtually killing small farmers and homesteads. But the worst part is, that it's the small farmers who defend the system (usually in France), because they think that without it, they would be completly bankrupt. I guess it's a bit like food stamps in the US.

The best example you can look at is New Zealand. They also had a heavily subsidised agriculture and decided to abolish the subsidies. Now small farmers are flurishing. Actually in the supermarkets in Denmark products like butter and lamb from New Zealand are cheaper (and better in my opinion) than the local products!

I once read an article by a guy who ran a business exporting crop from the EU to New Zealand and then selling it back to the EU at a lower price. The profit was made from the EU subsidies, which where higher than the price difference. The crop never actually left the harbor, but was just moved around on paper.

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