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Coveney announces eleventh Milk Quota Trading Scheme

 -Priority Pool Price to remain at 5 cent per litre-

Simon Coveney TD, Minister for Agriculture, Food and the Marine, today announced the eleventh Milk Quota Trading Scheme, which will be the first of two Trading Schemes to allocate quota in respect of the 2012/2013 milk quota year.

The Minister welcomed the fact that the recent review of the 2011/2012 Trading Scheme with the farming organisations and with ICOS had concluded that the Scheme is working well and that minimal changes are considered necessary. Indeed, the only change from last year is that eligibility under the successor category in the priority pool will be extended from the son or daughter of a former milk producer to now include the niece/nephew of the former producer.

"The review with the farming organisations and ICOS has made it clear that the structure of the Milk Quota Trading Scheme does not require radical alteration this year. I have therefore decided to leave the main elements unchanged, with, for example, the priority pool price remaining at 5 cent per litre, and the national redistribution mechanism for partially unsold quota, which was made available but not used last year, remaining in place in respect of the 2012/2013 Scheme. I have, however, agreed to an extension of the successor category to include the nephew/niece of a former producer".

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 Minister announced that the closing date for receipt of applications to the eleventh Milk Quota Trading Scheme will be Friday 7 October 2011. Details of the Scheme will be published in the farming press next week and application forms will also be available from Co-ops next week.

In conclusion, the Minister expressed his appreciation to the farming organisations and ICOS for their constructive engagement in the consultations on the operation of the Trading Scheme.

Date Released: 17 August 2011