Written answers

Wednesday, 13 April 2011

Department of Agriculture, Marine and Food

Milk Quota

9:00 pm

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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Question 44: To ask the Minister for Agriculture, Fisheries and Food if he is concerned that Ireland could be over quota in the new 2011 to 2012 milk quota year; and if he will make a statement on the matter. [7716/11]

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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Question 58: To ask the Minister for Agriculture, Fisheries and Food if he has the confirmed quota position for the 2010 to 2011 milk quota year; and if he will make a statement on the matter. [7717/11]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 44 and 58 together.

As of earlier today, with 99% of the national quota accounted for by returns from milk purchasers, estimated butterfat-adjusted deliveries for the 2010/2011 milk quota were 0.43% under quota. While these are estimated figures, and a definitive outcome will not be available for some months, at this juncture it appears that the country has, fortunately, avoided a superlevy.

I am of course concerned that Ireland could be over quota in the 2011/2012 milk quota year. Favourable market and weather conditions over the last twelve months have contributed to a dramatic increase in milk production, which has resulted in a remarkable turnaround from a position in which the country was 10% under quota at the end of the 2009/2010 milk quota year. Increased heifer retention is also a significant factor in what is expected to be a further increase in milk production in 2011/2012 and subsequent years. Indeed, anecdotal evidence suggests already that this year has got off to a flying start.

In such circumstances it is appropriate to again remind all dairy farmers of the need to carefully plan their production activities and pay close attention to the limitations imposed by the quota regime if they are to avoid potentially very damaging superlevy fines. Even allowing for a further increase of 1% in the national quota since 1 April 2011, recent delivery trends, if repeated, will put the country in serious danger of going over quota. It is therefore incumbent upon every milk producer to exercise the necessary caution and to seek advice from, for example, Teagasc on the most sensible approach to be taken in managing their enterprises as they enter a crucial phase of the preparations for quota abolition in 2015.

For my part, I intend to continue my efforts to raise the issue of a soft landing at every opportunity with member state colleagues and with the Commission. The latter has resisted attempts to revisit this matter, and there is, in any event, no guarantee that a majority of member states will support calls for a more flexible milk quota regime. Therefore, Irish dairy farmers must continue to operate on the assumption that no further changes will be made to the quota arrangements agreed in the context of the CAP Health Check.

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