Results of Seventh Milk Quota Trading Scheme

IRELAND - The aggregate results of the seventh Milk Quota Trading Scheme, which is the first of two that will allocate quota in respect of the 2010/2011 quota year have been announced.

23 December 2009

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Europe

Commenting on the outcome, the Minister of Agriculture, Brendan Smith said: "Despite the country's overall quota position and the difficult year experienced by dairy farmers, demand for milk quota has held up very strongly. Indeed, demand has risen significantly compared to the most recent exchange last March. However, there has been a further fall in the volume of quota traded, which probably again reflects a degree of mismatch between the expectations of buyers and sellers. The continuing price reductions, however, are very welcome."

Commenting further on the results, Minister Smith confirmed that a total of just over 38 million litres of milk quota was offered for sale, with 18 million litres successfully traded. Of this total, 12 million litres was sold on the exchange at prices ranging from 5 to 17 cent per litre, with more than ninety per cent of this amount traded at or below 12 cent per litre. The remaining 6 million litres was sold through the priority pool at the maximum price of 6 cent per litre, with the exception of Kerry, Lakelands and Connacht Gold, where the priority pool price followed the market clearing price to 5 cent per litre.

The Minister concluded by thanking the Co-ops once again for their cooperation in the implementation of the Trading Scheme. Full results for their respective areas will be sent to the Co-ops in the next few days. Details of the next exchange will be announced early in January 2010.