Ireland’s 15th Milk Quota Trading Scheme, which will be the first of two trading schemes to allocate quota in respect of the 2014/2015 milk quota year, was announced by the Minister for Agriculture, Food and the Marine, Simon Coveney this afternoon.
The minister welcomed the fact that, following detailed discussion with the farming organisations and with the Irish Co-operative Organisation Society (ICOS) on how best to approach the final year of the milk quota regime, there continues to be general agreement that the structure and approach adopted in previous years should continue.
“As we approach the end of the milk quota regime a number of farmers will be making big decisions about the value of the quota they hold. While the annual review of the schemes with the farming organisations and ICOS considered a number of different options for this final year of trading, the consensus was that it would be best to continue with the current structure.
“The Group did, however, recommend that the price of priority pool quota, which is primarily targeted at young farmers and smaller producers, should be lowered to 3 cent per litre. I have accepted that recommendation.”
The minister confirmed that the scheme will again be run in respect of each co-op area and will comprise a priority pool and a market exchange. Sellers will continue to contribute 30 per cent of the total quota offered for sale to the priority pool.
The method for calculating the market clearing price, including the 40 per cent price corridor, will remain unchanged. The 3:2 ratio on the distribution of priority pool quota between young farmers and producers with quotas of less than 350,000 litres will be retained, as will the option for sellers in certain co-op areas to sell at one or two cent per litre less than their original offer price.
The closing date for receipt of applications to the 15th Milk Quota Trading Scheme will be Friday 11 October 2013. Details of the scheme will be released next week and application forms will also be available from co-ops next week.
Main image O’Gorman Photography
Agriculture Minister Simon Coveney at the recent Tullamore Show