Progress made in milk quota talks

SUBSTANTIAL progress has been made in consultations with stakeholders on the future of milk quota policy, Agriculture and Food Minister Mary Coughlan announced yesterday.

She said the necessity to take a new approach to how milk quota is recycled from those who wish to exit milk production to those who see their future as progressive dairy farmers had been clear to her for some time.

Recalling that she announced last March her intention to progress to a more open market system of trading milk quotas, she said she was satisfied with the response she received and the quality of the debate that had ensued.

Ms Coughlan said her objective in changing the delivery mechanisms for milk quota is solely to achieve a viable, sustainable and efficient dairy industry in Ireland.

The clear purpose in this policy change is to release greater quantities of quota to committed and progressive dairy farmers faster than before.

Detailing many of the issues that the consultation process had considered, she said no final decisions have been made.

However, there appears to be consensus on the establishment of an exchange as a quota trading system and that there would be no role for auction-type arrangements. It was envisaged that one exchange would operate in each co-op area.

But an exchange area could be broadened to cater for situations where the size of individual co-ops is quite small and to generate a more active market, without affecting ring fencing.

Ms Coughlan said there also appears to be consensus that the exchanges will start running in December 2006.

This would provide time for quota purchasers to scale up their enterprises for the new quota, which would become available to them in April 2007.