After years of flooding international markets with surplus milk products, the european union, under heavy pressure from member nations, has curtailed its $59 billion annual subsidy system for its dairies. this curtailment of subsidies means:

This curtailment of subsidies means the price of milk products will rise up.

Explanation: This means the European Dairy farmers will have a chance on influencing the market price of milk products. The rising cost of production and feed will be finally passed on to the consumers. We may actually see a rise in the demand for milk products.

Removal direct cash grant or indirect tax exemption policy on the milk production.

Explanation:

It means the subsidized milk production in the E.u now poses a threat to indegenous milk industries of other non E.U member countries there by leading to loss of jobs in the milk industry due to the high competition it poses to the local milk products.

Removal of cash grant or tax exemption policy on the milk industry

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