ABSTRACT

In practice agricultural policy in the context of the Community has often seemed to give much more weight to the needs and the problems of farmers than to the implications of the policy for consumers. The mechanisms of the Common Agricultural Policy which maintain higher levels of consumer prices as a means of supporting producers are particularly damaging. Since the overall effect on production may be to raise the level of output consumers may enjoy food at lower prices than would otherwise have been possible. Deficiency payments transfer the cost of agricultural support from consumers to taxpayers. From a purely consumer point of view stability may be purchased at too high a price. The food price paid by consumers embodies services of distribution and processing well beyond the farm gate. Finally, it is worth stressing that the basket of goods purchased by consumers within the Community countries varies.