Coughlan urges 3% milk quota rise

IRELAND has formally called for a 3% increase in milk quotas from next April. The demand was made by Agriculture Minister Mary Coughlan at the meeting of EU Agriculture Ministers in Brussels.

It was echoed by a large number of other member states.

Ms Coughlan said she was pleased with the level of backing for this idea. She had been in contact with several of her counterparts in recent weeks to build such support.

She said the European Commission undertook to analyse carefully the demands for increased quotas and to bring forward a report before the end of the year.

Ms Coughlan said she was pleased the debate had begun on an appropriate and early EU response to the buoyancy in the dairy market.

“The buoyancy now evident has given a whole new impetus to the wider dairy sector following the implementation of the Luxembourg agreement and the virtual removal of market support mechanisms that have resulted from the reform.

“We have entered a new period of trade in which worldwide supply is no longer responding sufficiently to increased market demand. Dairy farmers and the dairy industry must have the opportunity to benefit from the new demand situation by increasing output.”

Ms Coughlan said the milk quota system has served Ireland well over the years. However, it must be responsive to developments in the market. An increase of 3% from April next would represent an appropriate response, she said.