Milk producers have been extremely successful since the establishment of the EEC in increasing production and reducing costs. However, this led to overproduction and the imposition of quotas in April 1984. In the area of the Scottish Milk Marketing Board, producers have been able to keep within their quota limits. Costs have been trimmed to meet a cutback in income of about 6%, largely by reducing purchases of feeding stuffs by 15–20%. Nevertheless, farm incomes have fallen sharply, and flexibility and readjustment will be needed to meet the demands of the futur