John Cregan (Limerick West, Fianna Fail)
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Question 56: To ask the Minister for Agriculture, Fisheries and Food the closing date for the milk quota trading scheme for the 2011 to 2012 milk quota year; and if he will make a statement on the matter. [40778/10]

John Cregan (Limerick West, Fianna Fail)
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Question 86: To ask the Minister for Agriculture, Fisheries and Food the basis on which the recently announced new milk quota trading scheme will operate; and if he will make a statement on the matter. [40777/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 56 and 86 together.

I recently announced the ninth Milk Quota Trading Scheme, which will be the first of two Trading Schemes to allocate quota in respect of the 2011/2012 milk quota year. The structure of the Scheme will remain largely unchanged. It will again be run in respect of each Co-op area, and will be comprised of a priority pool and a market exchange. Sellers will continue to contribute 30 per cent of the total quota offered for sale to the priority pool. The method for calculating the market clearing price, including the 40 per cent price corridor, will remain unchanged. The 3:2 ratio on the distribution of priority pool quota between young farmers and category 1 producers remains, as does the option for sellers in certain Co-op areas to sell at one or two cent per litre less than their original offer price. I have, however, decided to reduce the maximum price at which quota is traded in the priority pool, from 6 cent/litre to 5 cent/litre. If the exchange price for a given Co-op area drops below 5 cent/litre, the priority pool price will be the same as the exchange price.

In addition, I have introduced a national component in each phase of the scheme that will involve a new mechanism to allow sellers who have been successful in selling some but not all of their quota on the market exchange to dispose of their remaining quota through a national pool. Where necessary, this redistribution will be carried out by the Department immediately after each of the two stages in order to ensure that sellers are not forced to retain some of the quota offered for sale because of insufficient demand in their areas. Such a re-distribution will not involve a separate application process.

The closing date for receipt of applications is Friday 5 November 2010. Full details of the Scheme are available from Co-ops or on the Department's website www.agriculture.gov.ie/dairyingfarming/milkquotas.