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Dairy Sector.

Dáil Éireann Debate, Thursday - 20 May 2004

Thursday, 20 May 2004

Questions (87)

Bernard J. Durkan

Question:

87 Mr. Durkan asked the Minister for Agriculture and Food his plans to encourage ongoing participation in the dairy industry with particular reference to the need to encourage young persons; and if he will make a statement on the matter. [15100/04]

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Written answers

The changes I introduced to the milk quota regime in Ireland in 2000 have been very successful in achieving the overall objective of putting quota definitively in the hands of active committed producers at the lowest possible cost. The milk quota restructuring scheme is now the principal means by which additional milk quota is acquired by producers. Under the scheme, priority in the allocation of quota is given to specific categories of producers and in particular to new and recent entrants to dairying.

In 2000, I put in place a scheme for the allocation of 5 million gallons of the additional quota negotiated under Agenda 2000 to young milk producers who satisfied certain defined criteria. The 3,099 eligible applicants each received an allocation of 1,700 gallons. Furthermore, in 2001 an additional 4.5 million gallons was allocated to young farmer, and 3,442 applicants each received an extra 1,300 gallons under that scheme. I have also provided for milk production partnerships within the quota system to allow for flexibility in farming practice by combining two enterprises and quotas. Standard milk production partnerships were provided for in 2002. Following a review of the first year of the operation of the partnerships, I introduced new regulations to provide for the registration of new entrant-parent milk production partnerships. These arrangements allow a qualified young farmer to be part of a milk production enterprise in partnership with his or her parent without having to establish separate facilities.

Such partnerships provide an opportunity for trained young farmers to get established in the industry and have access to quota, as a priority category, under a milk quota restructuring scheme. In the light of experience, I have introduced some further flexibility into the partnership arrangements. In the new milk quota regulations which I signed in the last few weeks, I have made a number of amendments designed to help prospective partners.

Partnership arrangements within the milk quota system have a very useful role to play in providing for the type of flexibility necessary to respond to the demands on today's milk producers. The uptake in the new entrant-parent partnerships has been particularly encouraging. I will continue to keep the arrangement under review to ensure it is best suited to the needs of the sector.

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