Milk Quota Exchange plans sure to divide everyone
The decision of the Department of Agriculture to allow the milk quota to become a ‘farm asset’ was ill conceived, and has caused a multitude of difficulties over the years.
The difficulties in trying to equitably and fairly manage transfers of such a valuable asset have been compounded over the life of the quota regime.
The latest battle brewing is over the proposals for a Milk Quota Exchange.
No matter how it is handled there will be dissatisfaction on some side.
There are milk producers who are willing and able to pay a big price for additional quota.
The majority of small and medium sized producers — who have the greatest need for additional quota to sustain their future in milk production — cannot afford to compete at high prices.
Therein lies a dilemma — how to balance the needs of free trade and small and medium family farms.
The EU never intended milk quota to become a ‘tradable asset’. They regarded it as “a licence to produce”, in the custody of the state, allocated to producers for their use while engaged in dairy farming.
Instead, in this country, milk quota became a very valuable commodity over the years, and farmers with milk quota — even if they are no longer using it — believe that they are entitled to payment for it.
Some had purchased the quota at high prices and feel justified in seeking recovery of their investment. The milk quota exchange proposals seem to have been hastily conceived. The solution may be to go back to the drawing board and change course through the troubled waters.
