The EU Commission presented a draft regulation to the Agriculture Council this week proposing to increase milk quota reference quantities across community Member States by 2% with effect from 1st April 2008. The draft regulation was accompanied by a report from the Commission to the Council on the market outlook for the dairy sector. The conclusion of the report was that the 2% increase as originally proposed as part of the 2003 reform of the CAP may be implemented starting from 2008.
The proposal will now be considered at official level and will return to the Council early next year for consideration. When that process is complete I will consider the appropriate means of allocating the extra quota in Ireland.