Vol. 518 No. 6
204 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development the reason a person (details supplied) in County Cork was penalised for over-production of milk supplied to a creamery for each of the years 1995 to 1997; the criteria which constitute a quota; if butterfat content only was taken as the measuring instrument; if 1983 is taken as the base year for the introduction of milk quotas; and if he will make a statement on the matter. [12532/00]
Milk quotas were introduced on 2 April 1984 and producers' quotas were based on deliveries during the 1983 calendar year plus 497 gallons for producers with deliveries of less than 14,000 gallons and 3.55% for producers with deliveries of more than 14,000 gallons.
Ireland, like all other member states in the European Union, has a national milk quota and can, therefore, produce up to that level without penalty. Milk production in excess of the national quota is, however, subject to a super levy. Super levy liability is calculated in accordance with EU legislation on the basis of milk deliveries to registered milk purchasers in the milk quota year.
In addition to the provisions relating to the imposition of a super levy when actual milk deliveries have been exceeded, the relevant EU regulations include measures to restrict increases in the fat content of the milk deliveries. Penalties are imposed when the butterfat content of milk deliveries during a milk quota year exceeds the national butterfat representative level. Each producer has a butterfat representative level, which is based on the fat content of his or her milk deliveries during either 1984-85 or 1985-86 milk quota years, whichever is the higher. At the end of each milk quota year, milk deliveries of each producer are adjusted to take account of the difference between the fat content of the producer's milk deliveries and his or her butterfat representative level. The milk deliveries are adjusted upwards or downwards by 0.18% for each 0.1 grams/kg difference between actual fat and butterfat representative level.
Each year every co-operative or dairy submits details of the aggregated total of their producers' actual deliveries and fat adjusted deliveries. On the basis of these figures, the overall totals at national level are calculated by my Department and, in accordance with the relevant provisions in the EU regulations, super levy liability is calculated on the higher of the two quantities, that is, actual or fat adjusted milk deliveries, provided that this quantity exceeds the national quota.
