Milk quota for new dairy entrants to continue in 2013
It is based on 0.25% of the additional annual 1% allocation of quota since November 2008 by the EU, over the 2009 to 2013 period.
“Following detailed consideration with stakeholders, including industry representatives, on how best to utilise annual 1% allocation, it was decided that one quarter of the increase should be set aside for a major initiative aimed at attracting new entrants into milk production,” said the minister.
He was asked in the Dáil by Fine Gael TD Pat Deering (Carlow-Kilkenny) if he would correct the unfair situation of new entrants getting free quota while existing suppliers have to buy it.
Mr Coveney said, “In respect of the existing milk quota holders, they have received, in addition to the ‘across the board’ 2% increase added to their quota in 2008, a 0.75% compounded increase over the last three years, plus the positive effects of a downward adjustment in the butterfat coefficient, which equates to a possible further 2% rise in their quotas. They have received all of these increases at no cost.
“Against this background, I do not accept that the current mechanism of setting aside a certain volume of milk quota, free of charge, for the purpose of attracting new entrants into dairy farming can be construed as unfair.”
He said attraction of new entrants is an important dynamic in achieving the Food Harvest 2020 50% growth target for dairy output.
