Monday, August 04, 2008

EU Dairy Policy Kills

I blogged earlier about the change in US eating patterns--dairy is down over the last 35 years. But, if this post on the CAP (EU farm program) Health blog is correct, EU dairy subsidies have kept their consumption high, with adverse impacts. The idea is that the EU has kept dairy supports high, by buying surpluses, which are eventually consumed somewhere (in school lunch programs, etc.) The resulting increase in saturated fat consumption causes higher rates of cardio-vascular disease and deaths.

I'm not sure of the logic here, or with those who attack US subsidies for corn. I think economists would agree, no subsidies would mean only the most efficient farmers would survive, meaning the price level would drop and, presumably, consumption would go up. Maybe I'm wrong, but you might be able to make a case that subsidies help health, not hurt it.

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