15 December 2011

2 minute read

Europe

Commenting on the outcome, the Minister said: "This exchange has been characterised by a very significant excess of demand over supply, with more than ten times as much quota demanded as offered nationally. The result has been an almost full trade, with 99 per cent of all quota offered for sale being taken up by buyers."

Minister Coveney confirmed that a total of 24 million litres of milk quota was offered for sale, with 23.7 million litres successfully traded. Of this total, 16.7 million litres was sold on the exchange at prices ranging from 10 to 56 cent per litre. The remaining seven million litres was sold through the priority pool at the maximum price of five cent per litre.

Referring to the national redistribution mechanism for partially unsold quota that was introduced for the first time last year, the Minister confirmed that the mechanism again did not have to be activated: "As was the case in each of the last two exchanges, the level of demand ensured that all of the quota offered at, or slightly above, the market clearing price was sold. No seller was therefore faced with the prospect of selling only part of their quota within their Co-op area, and so no national redistribution was necessary."

The Minister concluded by thanking the Co-ops once again for their cooperation in the implementation of the Trading Scheme. Full results for their respective areas will be sent to Co-ops. Details of the next exchange will be announced early in January 2012.

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