In March I announced my intention to move to a more open market system for transferring milk quotas, which will come into effect on the 1st April 2007.
My Department and I have made solid progress in the continuing consultation process on the detailed arrangements to give effect to my decision. This comprised of meetings with the relevant farm organisations and with representatives of the milk-processing sector and individual co-ops. The issue of future milk quota policy has also been discussed with the participating farm organisations at the partnership negotiations, most recently this morning.
We are now undertaking a comprehensive analysis of the issues raised and the options for dealing with them, with a view to designing an appropriate transfer mechanism. Further consultations will take place before finalising the new system, and the operational details will be announced in good time to allow for all parties concerned to make appropriate plans before the start of the 2007/2008 milk quota year.