Dáil Éireann debate -
Thursday, 25 Oct 2001

Vol. 543 No. 1

Written Answers. - Milk Quota.

Denis Naughten

Question:

122 Mr. Naughten asked the Minister for Agriculture, Food and Rural Development if he will approve additional cow quota for a person (details supplied) in County Roscommon; when a final decision will be made on the allocation of quota; and if he will make a statement on the matter. [25769/01]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The person named applied for an allocation of suckler cow quota from the 2002 national reserve under category D. This category was reserved for farmers who apply regularly for the suckler cow premium and who require additional quota to ensure the future viability of their holdings.

Category D ranked fourth in priority after category A, first time applicants under 35 years of age, category B, farmers with holdings on off shore islands and category C, organic farmers registered with the Department. A special category, category E, for farmers in the Cooley peninsula also held priority over category D.

All the available quota of 3,048 premium rights was distributed to eligible applicants under categories A, B, C and E. There was no quota available to make any allocations to any applicant who applied under category D.

Michael Creed

Question:

123 Mr. Creed asked the Minister for Agriculture, Food and Rural Development if an evaluation has been carried out on a 2001 milk quota restructuring scheme; the categories of producers who surrendered milk to the scheme; the categories of producers who benefit from the volume of milk which was allocated to each category; his views on whether the scheme has facilitate the enhanced viability of small scale milk producers; and if he will make a statement on the matter. [25770/01]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The following table summarises the outcome of the 2001 milk quota restructuring scheme. The data prepared by my Department is provisional at this stage:

1.Reallocation of Restructured Quota

	million litres	(million gallons)	% quota allocatedby category	No. ofproducers
Category I producers (Under 180,000 litres)	39.4	8.7	49	5,252
Category II producers (180,000 – 275,000 litres)	30.7	6.7	38	4,217
Category III producers (Over 275,000 litres)	10.7	2.3	13	1,711
Total	80.8	17.7		11,180

2.Surrender of Quota under the Restructuring Scheme

(i)Producers total quota restructured
	million litres	(million gallons)	No of quota holders
–active producers	26.0	(5.7)	462
–dormant quota holders	43.6	(9.6)	731
(ii)Part Restructuring	13.2	(2.9)	215
Total quantity restructured	82.8	(18.2)	1,408

3.Transactions not completed

2 million litres (0.5 million gallons)

My main objective in introducing significant changes to the operation of the milk quota regime in Ireland in April 2000 was to ensure that milk quota was permanently transferred at a reasonable price to active committed producers, particularly those in the small and medium size categories. The outcome of the 2001 restructuring scheme is extremely satisfactory especially when it is taken into account that many milk producers, who wished to sell their quota, could not do so because of the foot and mouth disease crisis.

The quantity of milk quota restructured in Ireland since I introduced the new regime is over 360 million litres or almost 80 million gallons. In excess of 88% of this quota has been sold to the small and medium sized producers. Furthermore, the price of restructured quota has been reduced by 20% since 1999. The satisfactory outcome of these schemes will enable small and medium sized dairy farmers to operate their dairying enterprise in a much more efficient and effective manner.