Every country in the European Union has a limit to the amount of milk that it is allowed to produce. That is its ‘quota’. The total quota is divided up between all the dairy farmers in the country. Their individual quota is the number of litres of milk that they are allowed to produce each year. There are heavy financial penalties for producing too much milk and going ‘over quota’. A farmer who does not use all of his quota may sell or lease it to another farmer. Anyone who wishes to start producing milk or to expand their business must first buy or lease quota.
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