Written answers

Wednesday, 27 June 2007

Department of Agriculture and Food

Milk Quota

9:00 pm

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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Question 282: To ask the Minister for Agriculture, Fisheries and Food the reason a person (details supplied) in County Galway was deemed to be an unsuccessful seller under the milk quota trading scheme phase 2 2007 to 2008; the further reason 30% of the quota was surrendered to the priority pool despite the fact that the applicant was unsuccessful in selling to the trading scheme; if her attention has been drawn to the fact that the applicant suffers from Parkinson's disease; and if she will make a statement on the matter. [17925/07]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The detailed rules relating to the operation of the Milk Quota Trading Scheme state that offers to sell quota which are at or below the Market Clearing price as calculated on the exchange are deemed to be sold at that price. Accordingly, an applicant wishing to sell will be unsuccessful if the price at which the quota is offered exceeds the Market Clearing price.

In the case of the person mentioned, the quota was offered for sale at a price of 17 cent per litre. The Market Clearing price on the exchange concerned was 16 cent per litre. Therefore because the applicant's offer price exceeded the Market Clearing price, his offer was deemed to be unsuccessful.

A further stipulation in the rules governing the Milk Quota Trading Scheme is that 30 per cent of all quota offered for sale is sold at a maximum price into the priority pool, for subsequent distribution to priority category producers. This is the case in respect of all applicants, regardless of whether they are successful on the exchange. The Trading Scheme is now being reviewed, and a third exchange will take place in the autumn.

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