Written answers

Thursday, 27 November 2008

Department of Agriculture and Food

Milk Quota

5:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Question 165: To ask the Minister for Agriculture, Fisheries and Food his views on the significant variation in prices in individual co-op areas ranging from 10 cent to 40 cent per litre available under the fifth round of the milk quota trading scheme; the legal advice which his Department has taken regarding the operation of this scheme and the restriction it imposes on those intending to sell their quotas and the restriction it places on them regarding the limited number of potential purchasers to whom they can offer their quota; and if he will make a statement on the matter. [43190/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The variation in price experienced in the latest Milk Quota Trading Scheme reflects a similar pattern in the previous four trading schemes run in the past two years. These variations arise for a variety of reasons, the more prominent being the balance between supply and demand within Co-op areas. Those areas with the largest market clearing prices display the characteristics of a strong level of demand compared to tightness of supply and vice versa in other areas where the price is relatively low. It was always recognized that prices would vary from Co-op to Co-op, reflecting the particular market characteristics of each Co-op area.

The Milk Quota Trading Scheme complies with the terms of Article 75 of Council Regulation (EC) No 1234/2007. In addition, in accordance with established practice, my Department engaged in a detailed consultation process under the auspices of the Milk Quota Review Group, whose membership includes the main farming organisations and ICOS, before the decision to proceed with the current scheme was made. The advice of the Attorney General was also taken into account in the implementation of the scheme.

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