Controlling Food Production and Supply Flashcards
Why do food production and supply have to be controlled?
To prevent overproduction but ensure food availability, create fair living standards for farmers and to preserve the natural environment.
What controls food production and supply in Europe?
The Common Agricultural Policy.
What are subsidies?
Payments made directly to farmers so that they will grow specific products to maintain food security.
what are the negative aspects of subsidies?
The cost of paying farmers, can create overproduction.
What are quotas?
Quotas limit the production of some foods to prevent overproduction.
What are import quotas?
Quotas dictating the amount of produce that can be imported by one country.
What are the negative effects of import quotas?
They prevent consumers accessing cheap imports and influence international production and trade.
What are ‘milk lakes’and ‘butter mountains’?
Terms coined after overproduction of milk in the 1980s, leading to the introduction of milk quotas
Define intervention?
Intervention is when the EU buys produce from farmers.
Why does the EU carry out intervention?
As it improves food security by ensuring all farmers sell their produce even when demand is low.
What happens to intervention stock?
It is either stored by the EU for resale at a later date, exported or disposed of.
Name the three negative impacts of intervention.
The cost of transport, storage and disposal.
It can trigger over production.
It can lead to export dumping and market disruption
What is pricing?
A minimum price set by the EU for a certain product. It controls production by encouraging farmers to start or start producing a specific product.
Name the negative impacts of pricing.
Cost of paying farmers and thus an increased price for consumers.
What are tariffs?
Taxes that are applied to imported good
