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Successful Launch of Milk Quota Trading Scheme

Coughlan Announces Results of 1st Milk Quota Trading

The Minister for Agriculture and Food, Mary Coughlan TD, today announced the aggregate results of the first ever Milk Quota Trading Scheme in Ireland. Speaking this morning in her Department where she launched the first milk quota exchange, the Minister said: "This is a very encouraging first step in the process I launched nine months ago when I announced my intention to move to a more open market system of trading milk quotas in Ireland. My objective in changing the delivery mechanism for the transfer of quota was to achieve a viable, sustainable and efficient dairy industry in Ireland. These results demonstrate what I already knew, that farmers would act prudently and sensibly in their bids for quota from the Exchange and I am delighted with its success."

The Minister said that she would announce details of the second scheme after a short period of consultation with the main farm organisations and ICOS. Announcing the results, Minister Coughlan said that the first scheme involved the trading of some 120 million litres of milk quota. An amount of 44.3 million was sold on the market Exchange at prices ranging from 11 cent per litre to a maximum of 23 cent per litre. The remaining volumes, representing some 28.6 million litres from the priority category pool was sold at the maximum price of 12 cent per litre, with the exception of one Co-op, where the priority category pool was sold at the exchange price of 11 cent per litre. In summary, a total of 73 million litres was transferred in the first Milk Quota Trading Scheme.

The exchange functioned in all but nine Co-op areas, where, not surprisingly, the volume of milk offered for sale was extremely small or no milk at all was offered. The Co-ops concerned were amongst those with the smallest volumes of quota. The Minister emphasised that the second exchange would afford sellers who failed to complete exchange sales an immediate second chance to sell the remaining volume of their quota. In doing so they will have the benefit of the information available from the results of this exchange and they may continue to produce the full volume of their quota in the current milk quota year. Full details of the results of each Coop area Milk Quota Trading Scheme will be sent to Coops by Friday and they will contact individual buyers and sellers next week. The Minister expressed her gratitude to the Coops for their cooperation in the implementation of the first Milk Quota Trading Scheme.

NOTE FOR EDITORS

Aggregate Milk Quota Trading Scheme results for each Coop are attached.

Date Released: 31 January 2007