Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 410: To ask the Minister for Agriculture, Fisheries and Food the situation regarding the transfer of milk quota in 2007; further to Parliamentary Question No. 204 of 1 March 2007, if she has satisfied herself that all milk suppliers have been treated fairly and that this new trading scheme has worked in the interest of all; and if she will make a statement on the matter. [25359/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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As the Deputy will be aware, the mechanism through which milk quota was transferred in 2007 was the Milk Quota Trading Scheme, which I launched at the end of last year. The Scheme is operated at Co-op area level, and is comprised of a market exchange and a priority pool. It facilitates a more market-oriented transfer of quota than had previously been the case under the Milk Quota Restructuring Scheme. Two exchanges took place in January and April of this year, allocating a total of 200 million litres, or 4 per cent of national quota, to active milk producers.

After a review of the Trading Scheme with the farming organisations and ICOS, I announced my intention to build on the success of the Scheme by holding a further two exchanges for the purpose of allocating quota ahead of the 2008/09 milk quota year. Indeed the closing date for the first exchange is this Friday, 26 October. The Scheme will remain largely unchanged, with a market exchange and a priority pool operating in each Co-op area. However, I have made two key changes that I believe will further improve its operation. In the priority pool, a new distribution ratio of 3:2 between young farmers and Category 1 producers should make increased volumes of quota available to small-scale producers. In addition, a new mechanism will be introduced to the exchanges to facilitate trade in areas where either low or no volumes of quota have been traded because of local supply/demand characteristics. I am confident that these changes will further enhance the amounts of quota traded around the country.