Excellent news; so there will be fewer milk farmers then?


Some people don't seem to get the point of this market thing:

The boss of British yoghurt-maker Yeo Valley has warned that the removal of the EU milk quota system, which previously capped production will be another blow for struggling farmers.

Tim Mead, chairman of the Somerset-based dairy producer, said the removal of restrictions will encourage the industry to ramp up production, leaving farmers with a surplus of dairy products that they are then unable to sell.

Yes, this is rather the point of the changes.

Currently there are restrictions upon production. This means that each producer is operating at inefficient levels: they require more inputs in the form of land, labour and capital than the level of their output should require, because of those production restrictions.

So, we remove those production restrictions and the more efficient of those producers will expand their production, from very much the same set of inputs. This does of course mean that the less efficient producers then go out of buseinss. Allowing those inputs, that land, labour and capital, to be repurposed to go off and produce something else which satiates some other human desire or want.

That is, we all become richer by removing those production constraints. Because, from our same set of inputs, we get more human desires satiated. And this is the point and purpose of having an economy in the first place: to satiate, as best we can, as many human desires and wishes as we are capable of.

Removing production quotas will mean some milk farmers go bust. Good, that's the point of removing the production quotas.