95% of all quota offered for sale in Milk Trading Scheme traded

SOME 95% of all quota offered for sale in the first Milk Quota Trading Scheme for the 2011/2012 quota year has been successfully traded, and volumes have significantly increased on 2009 levels.

A total of just under 48 million litres of milk quota was offered for sale, with 46 million litres successfully traded.

Of this total, 34 million litres was sold on the exchange at prices ranging from 5 to 32 cent per litre, with 99% of this amount traded at or below 25 cent per litre. The remaining 12 million litres was sold through the priority pool at the maximum price of 5 cent per litre.

This is the first of two quota allocations in respect of the 2011/2012 trading period.

Announcing this ninth offering under the exchange scheme, Minister for Agriculture, Fisheries and Food Brendan Smith said he was pleased with the take-up of quota.

Mr Smith said: “A significant increase in demand has resulted in 95% of all quota that was offered for sale on this exchange being traded.

“The actual volume traded has also risen significantly, with almost the same amount of quota sold today as the combined total in last year’s two exchanges.”

The national redistribution mechanism for partially unsold quota, introduced for the first time in this scheme, did not have to be activated.

Mr Smith said: “Such was the level of demand for quota around the country on this occasion that all of the quota offered at, or slightly above, the market clearing price was sold. No seller was faced with the prospect of selling only part of their quota within their co-op area, and so no national redistribution was necessary.”

The minister thanked the co-ops for their cooperation in the implementation of the trading scheme. Details of the next exchange will be announced early in January 2011.