Effects of the agenda 2000 on livestock framing

The policy of price supports being connected to the intervention commitment s of the state resulted - with increasing surpluses - in extremely rising m arket organization costs. The 1992 CAP reform represented a basic change of agricultural policy. The object was to reduce the prices in the direction of world market level and to compensate the arising income losses with dire ct payments. For the present, this system was implemented for cereals and o ilseeds and beef. Concerning dairy sector, however, the quota regulation sy stem should to be continued till 2000. Agenda 2000 is to be seen as a more consequent continuation of the CAP reform. The prices will be reduced furth er and the direct payments will be increased. For the first time, this sche me is planned for the dairy sector, too, although the quota regulation is s upposed to exist till 2006. Summarizing, the proposals of Agenda 2000 will result in income losses forcing the change of agricultural structure.