The EU Parliament-backed proposal, which is part of CAP reform discussions, would see supply chain management measures imposed for up to three months "in the event of a severe imbalance in the market for milk and milk products".
Under the European Parliament amendment to Article 156a, during these times, dairy farmers who voluntarily cut production by at least five percent, compared with the same period in the previous year, would be granted aid.
While, those who increased their production by at least five percent compared with the same period in the previous year, would be forced to pay a levy.
"Dairy farmers work with the knowledge that controls on how much milk they produce will end in 2015. But there are some in Europe who would like the supply of milk within the EU to remain shackled through the back door," said Mansel Raymond, NFU dairy board chairman.
The union supported the existing tools designed to act as a market safety net in times of volatility - intervention, public storage and direct payments to dairy farmers.
