Quota increase will benefit country

A LARGE expansion of the European Union milk quota would benefit the Irish dairy sector in advance of milk quota abolition, but it may not suit all dairy farmers, according to a new economic report on the sector published yesterday.

The report by the FAPRI-Ireland Partnership revealed that Ireland is well placed to increase its milk production and that an early end to the quota constraint would see it benefit at the expense of competitors in the EU.

Ireland has traditionally been a supporter of the milk quota system, which has managed the supply of milk and supported the price paid to farmers, since it was introduced at EU level in 1984.