Flexibility on quotas ruled out by Brussels
Commission rejects calls for additional milk to be released ahead of 2015
Published 09/11/2010 | 05:00
No further changes to the milk quota regime will be forthcoming ahead of the abolition of quotas in April 2015.
This will disappoint dairy farmers hoping for extra allocations of milk quota to cope with the expected surge in Irish milk production.
As a result, fears are now growing that quota values will spike over the coming years as dairy men attempt to avoid super levy fines.
Despite this, a draft report from the EU Commission, regarding the impact of the Health Check reforms on the dairy sector, claims that a hike in quota prices is unlikely in most member states.
"Milk quota prices have a very low value, already at zero in some member states, and decreasing in most of the others with a view to reaching zero in 2015," stated the report.
"Under these circumstances there is no reason to revisit the Health Check decisions with regard to the gradual increase in quotas and the end of the quota regime on April 1, 2015."
Under the CAP Health Check, a 1pc increase in milk quotas was introduced for five consecutive years -- beginning last year -- and a further 1pc hike was made available due to fat corrections.
Controversially, the report also stated that the Commission would consider introducing compensated production reduction measures to correct occasional imbalances in the market.