120m litres of milk quota traded

SOME 120 million litres of milk quota were traded in the first ever quota trading scheme, it was announced yesterday.

Agriculture and Food Minister Mary Coughlan, announcing the aggregate results yesterday, said it was a very encouraging first step in the process.

She launched the scheme nine months ago when she announced her intention to move to a more open market system of trading milk quotas in Ireland.

“My objective in changing the delivery mechanism for the transfer of quota was to achieve a viable, sustainable and efficient dairy industry in Ireland.

“These results demonstrate what I already knew, that farmers would act prudently and sensibly in their bids for quota from the Exchange and I am delighted with its success,” she said.

Minister Coughlan said she would announce details of the second scheme after a short period of consultation with the main farm organisations and ICOS.

Announcing the results, Minister Coughlan said the first scheme involved the trading of some 120 million litres of milk quota. An amount of 44.3 million litres was sold on the market exchange at prices ranging from 11 cent per litre to a maximum of 23 cent per litre.

The remaining volumes, representing some 28.6 million litres from the priority category pool was sold at the maximum price of 12 cent per litre, with the exception of one co-op, where the priority category pool was sold at the exchange price of 11 cent per litre.

In summary, a total of 73 million litres was transferred in the first milk quota trading scheme. The exchange functioned in all but nine co-op areas, where, not surprisingly, the volume of milk offered for sale was extremely small or no milk at all was offered. The co-ops concerned were amongst those with the smallest volumes of quota.

Minister Coughlan said the second exchange would afford sellers who failed to complete exchange sales an immediate second chance to sell the remaining volume of their quota. In doing so they will have the benefit of the information available from the results of this exchange and they may continue to produce the full volume of their quota in the current milk quota year.