Séamus Kirk (Louth, Fianna Fail)
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Question 457: To ask the Minister for Agriculture, Food and the Marine the estimated value in terms of output, export and job creation if there was a 5% and a 10% increase in the national milk quota; and if he will make a statement on the matter. [12697/12]

Simon Coveney (Cork South Central, Fine Gael)
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The value of milk output at farm gate in 2011, based on production volumes of 5.5bn litres and an average milk price of 34c per litre, was €1.9bn. A 5% or 10% increase in production, based on 2011 output figures and assuming prices remain the same, would result in output values of €2bn and €2.1bn respectively, assuming current world demand remains.

Exports of milk and dairy products in 2011 at €2.7bn were 13% higher than 2010. Based on these values, a 5% or 10% increase would result in export values of €2.8bn and €2.97bn respectively. However, due to the volatility of international markets, caused by variations in global supply and demand, there will always be fluctuations in dairy prices. The production levels envisaged by the Deputy would, at a minimum, consolidate existing on- farm employment in the c.18,300 milk producing farms, as well as the 9,000 off farm jobs in the dairy industry generally and could result in additional off farm jobs being created in the processing, sales or distribution sectors.

It should be noted, however, that it will be 2015 at the earliest, following the ending of the Milk Quota regime in April 2015, before milk production quantities can increase by the levels set out in the question. The 'soft landing' concession, granted under the CAP Health Check 2008 of granting 1% quota increases to Members States from the 2009/2010 quota year to 2013/2014 (five increases) will continue.