1. Minimum price where some of the product is imported P Q O PwPw EU supply QS1QS1 Qd1Qd1 EU demand Imports

2. P Q O PwPw PtPt EU supply QS1QS1 Qd1Qd1 EU demand Import levy Minimum price where some of the product is imported

3. P Q O QS2QS2 PwPw PtPt EU supply QS1QS1 Qd2Qd2 Qd1Qd1 EU demand Import levy Imports Minimum price where some of the product is imported

4. P Q O QS2QS2 PwPw PtPt EU supply QS1QS1 Qd2Qd2 Qd1Qd1 EU demand Import levy Imports Minimum price where some of the product is imported Extra amount paid By consumers

5. P Q O QS2QS2 PwPw PtPt EU supply QS1QS1 Qd2Qd2 Qd1Qd1 EU demand Import levy Imports Minimum price where some of the product is imported Extra amount paid to farmers AMOUNT PAID IN IMPORT LEVIES to Govt AMOUNT PAID IN IMPORT LEVIES to Govt

6. But over time effect of subsidies and price floors means supply rises – so need to look at Minimum prices for a product where the country is self-sufficient P Q O PwPw S EU QS1QS1 Qd1Qd1 D EU a b Exports

7. P Q O PwPw PiPi S EU QS1QS1 Qd1Qd1 D EU a b Minimum prices for a product where the country is self-sufficient

8. P Q O QS2QS2 PwPw PiPi S EU QS1QS1 Qd2Qd2 Qd1Qd1 D EU a b d e Minimum prices for a product where the country is self-sufficient Surplus

9. P Q O QS2QS2 PwPw PiPi S EU QS1QS1 Qd2Qd2 Qd1Qd1 D EU a b c d e f Amount bought into intervention Minimum prices for a product where the country is self-sufficient Surplus

10. P Q O QS2QS2 PwPw PiPi S EU QS1QS1 Qd2Qd2 Qd1Qd1 D EU a b c d e f COST OF BUYING THE SURPLUS COST OF BUYING THE SURPLUS Minimum prices for a product where the country is self-sufficient Surplus

11. P Q O QS2QS2 PwPw PiPi S EU QS1QS1 Qd2Qd2 Qd1Qd1 D EU a b c d e f REVENUE FROM SALE OF SURPLUS ON WORLD MARKET REVENUE FROM SALE OF SURPLUS ON WORLD MARKET NET COST Minimum prices for a product where the country is self-sufficient Surplus