merrion street

The Minister for Agriculture, Food and the Marine, Simon Coveney TD, today announced the aggregate results of the thirteenth Milk Quota Trading Scheme. This is the first of two schemes that will allocate quota in respect of the 2013/2014 milk quota year.

A total of 28.7 million litres of milk quota was offered for sale under the scheme, with 23.5 million litres successfully traded. Of this total, 15.5 million litres was sold on the exchange at prices ranging from 9 to 25 cent per litre. The remaining 8 million litres was sold through the priority pool at the maximum price of 5 cent per litre.

Commenting on the outcome, the Minister said "The significant volumes traded show that the Milk Quota Trading Scheme is still regarded by farmers as a valuable mechanism for those wishing to purchase or dispose of milk quota. There has of course been a reduction in demand for additional quota compared to the high of last year. This may be attributable to the fact that production at the end of September 2012 was running at some 2.14% under quota, and the approach of quota abolition in April 2015 may also be having an impact. Despite these factors however, it is evident that producers are planning for expansion, and demand for quota still outstripped supply by a ratio of 4:1. This resulted in positive trading outcome, where 82 per cent of all quota offered for sale was taken up by buyers".

Referring to the national redistribution mechanism for partially unsold quota that was introduced in 2010, the Minister confirmed that the mechanism did not have to be activated, "As was the case in each of the last four exchanges, the level of demand ensured that all of the quota offered at, or slightly above, the market clearing price was sold. No seller was therefore faced with the prospect of selling only part of their quota within their Co-op area, and so no national redistribution was necessary". The Minister also said that it was evident that sentiment in the dairy sector remained extremely positive and that the industry, both at processing and farm level was gearing up for a significant expansion in production after 2015, "The abolition of quotas in 2015 represents a tremendous opportunity for the Irish dairy sector and the Irish economy generally. I have great confidence in the ability of all the players in this industry to work together to build on the strong sustainability credentials of Irish farming to develop a bigger and brighter future for the sector".

Concluding, the Minister thanked the Co-ops once again for their cooperation in the implementation of the Trading Scheme and said that details of the next exchange would be announced in December.

NOTE FOR EDITORS

Aggregate results of the thirteenth Milk Quota Trading Scheme are attached. Full results for their respective areas will be sent to Co-ops today.