Dáil Éireann Debate, Thursday - 18 November 2004
15 Ms Shortall asked the Minister for Agriculture and Food her views on the imposition of the €9.6 million levy by the European Commission on Irish farmers due to over-production of milk; the steps that can be taken to avert such levies in future; and if she will make a statement on the matter. [29318/04]
View answerIn the milk quota year 2003-04 Ireland's national quota of 5.2 billion litres was exceeded by 26 million litres. Consequently, a super levy liability of €9.57 million became payable to the EU Commission. EU and national regulations on the milk quota system specify that, where the national quota is exceeded, the resulting levy must be shared between those producers who contributed to the excess. To that end, each quota holder is responsible for the management of his-her milk quota on the understanding that production in excess of quota may attract a levy liability.
My Department on a regular basis throughout the year publishes estimates of milk deliveries, and the extent to which these are under or over the national quota. It also advises producers to keep in close touch with their co-ops-dairies in this matter.
In the event of an excess production over quota at national level, there is a system in place, under the control of my Department, whereby unused quota is reallocated to certain categories of producer. This system is known as fleximilk and the terms are drawn up following consultation with the main farm organisations and the industry.
The market for dairy products this year has been very strong and producer prices for milk are similar to last year in addition to which a dairy premium amounting to approximately 1.2 cents per litre has been paid directly to producers.
