Jim Daly (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 601: To ask the Minister for Agriculture, Food and the Marine his views in relation to the proposed abolition of milk quota in 2015; and if he will make a statement on the matter. [11267/12]

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

Over the past year, I and my Department have been extremely active in raising the question of an adjustment to the milk quota regime at every appropriate opportunity. We have made determined efforts to secure a soft landing for all Member States in the lead-up to milk quota abolition in 2015, as envisaged in the 2008 CAP Health Check agreement. I have discussed the matter extensively with other EU Agriculture Ministers, including in bilateral meetings with my Danish, French, German and Estonian counterparts. Furthermore, officials from my Department have raised this issue at EU level meetings, and at bi-lateral meetings with other Member States. We will continue to pursue this matter over the coming months.

Among the options discussed in relation to a soft landing are the front-loading of the remaining quota increases, a reduction in the super levy, a further reduction in butterfat correction levels, or a kind of EU flexi-milk arrangement which would operate provided EU production overall was within quota. Most attention has been focussed on the butterfat correction, and in December a coalition of Member States involving Ireland, Denmark, the Netherlands, Belgium and Cyprus formally put a specific proposal to the Special Committee for Agriculture for an adjustment to the butterfat correction mechanism.

Unfortunately, the Commission has consistently resisted attempts to reconsider this issue, as it has resisted attempts to revisit the outcome of the 2008 CAP Health Check in an overall sense. This is a view which is supported by a number of Member States, some of whom are firmly against any further adjustment to the Health Check agreement. It is also the case that only a minority of Member states is likely to be adversely affected by the current quota restrictions, and therefore persuading a qualified majority to agree to an adjustment of the current regime represents a significant challenge. There are currently no signs of a breakthrough in this regard.

Irish dairy farmers must therefore continue to operate on the assumption that no further changes will be made to the milk quota arrangements agreed in the context of the CAP Health Check. This is extremely important, and I cannot emphasise the point strongly enough. Milk deliveries in the 2010/2011 milk quota year were only just below quota, and deliveries in 2011/2012 to date continue to run almost on quota. With a super levy an increasing likelihood in the final years before quota abolition, all dairy farmers must carefully plan their production activities and pay close attention to the limitations imposed by the quota regime if they are to avoid potentially ruinous super levy fines.