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Abstract
Due to the sharp decline in prices of international and domestic dairy markets the EU Commission decided and implemented two aid measures in September 2016. Within the framework of the EU milk production reduction milk producers received an aid if they reduced their milk production. Within the subsequently proceeded ‘Milchsonderbeihilfe’ milk producers received an aid if they did not increased milk production. This report evaluates the realisation and the willingness of participation of German milk producers in both aid measures. The most important finding is that dairy markets operate well even without state interventions. German milk producers already reduced their milk production before the aid measures become effective. Producers reacted to the declined dairy prices. Therefore the willingness of participation was low. This shows the fundamental functionality of dairy markets.