Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context

Question 419: To ask the Minister for Agriculture, Food and the Marine if he will clarify the operation of the milk quota trading scheme with regard to specific provision therein for smaller producers; the volume of milk expected to be traded in the current round; and if he will make a statement on the matter. [29529/11]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

The Milk Quota Trading Scheme is run twice annually in respect of each Co-op collection area, and is comprised of a priority pool and a market exchange. A maximum of thirty per cent of the quota offered for sale is sold into the priority pool at a maximum price. This pool of quota is allotted to eligible applicants under one of four priority categories. The remainder is traded through an exchange at prices determined by sellers and buyers themselves.

Quota from the Priority Pool is allotted to the four priority categories in the following order of preference:

-Successors

-Producers with "lost lease" entitlements

-New and recent entrants to dairying under 35 years of age

-Category 1 producers, and new and recent entrants to dairying over 35 years of age.

Category 1 producers are those with a permanent quota of less than 350, 000 litres, and while they may from time to time access quota as Successor or Lost Lease applicants, the majority qualify under category 4 above.

The quota remaining in the priority pool after the applicants in the Successor and Lost Lease categories have been catered for is divided between categories 3 and 4 in a ratio of 3:2. In the event that a priority category request for quota is not satisfied from the Priority Pool, the balance of the bid is placed on the Exchange.

As the processing of applications in the current scheme is at an early stage, I am not in a position to comment on the volumes of milk expected to be traded. I intend to announce the results of the scheme in late November. I can, however, confirm that the number of applications received from buyers has increased by approximately 50% since the last scheme while the number of applications received from sellers has decreased marginally.