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The problems of assessing both the extent and the cost of market imbalance are discussed, and the difficulties of reconciling national and Communauty policy objectives noted. With reference to the dairy industry, it is suggested that, in the absence of harmonization of economic policies in areas other than agriculture, measures to restrict supply should take into account the particular problems arising for countries where consumption exceeds production. Certain measures are proposed, which might be implemented in the context of a policy aiming to gradually reduce the level of public support in agriculture.

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