The European Union (EU) milk production reduction scheme has helped cut production by 851,700 tons of milk in the last quarter of 2016, the European Commission said Thursday in a statement.
The scheme was launched last summer and was financed to the tune of 150 million euros (161 million U.S. dollars).
The last quarter of 2016 was the first reduction period, during which 43,968 milk producers from across the EU applied for support from the bloc for agreeing to voluntarily reduce their production of milk.
According to the Commission, this scheme was one of the flagship measures to counter rising trends in EU milk prices over the last few months, balancing the markets.
Under the scheme, farmers receive 14 euro cents for every kilogram of milk production they agree to reduce.
However, farmers are paid on the basis of the actual reduction in production and not the planned amount applied for, said the Commission. Enditem