INCREASE IN MILK QUOTAS FROM 1 APRIL 2008
The European Council agreed on 17 March to increase EU milk quotas by 2% from 1 April 2008.
The increase will be added to the 0.5% quota increase that was already planned for the start of the 2008/09 quota year. Active producers will therefore receive a quota increase of 2.5% with effect from 1 April 2008.
The allocations will be made on the same basis as in 2006 and 2007. That is, as a percentage of the net quota held on 31 March 2008, taking account of any quota leased in/bought as clean and excluding any leased out/sold as clean. This will include allocations to producers who acquired used quota which had not been leased.
The additional quota will be divided between wholesale and direct sales quota in accordance with the quota held by producers at the end of the 2007/08 quota year. The butterfat base of the additional quota for wholesale producers will be the same as their permanent butterfat base. Where producers have no permanent quota, and thus no permanent butterfat base, their additional quota will be allocated the UK’s reference fat content of 3.97%.
Quota holders who market no milk in the 2007/08 quota year, or who cease production on or before 31 March 2008, will not be eligible for any additional quota.
Anyone giving up milk production temporarily may still be regarded as milk producers under certain circumstances. These cases would be identified by the Rural Payments Agency wherever possible.
The method of allocation will ensure that the additional quota is allocated to active producers only and in line with current production levels.
The awards will be made by the RPA automatically and details included within the Start of Year statements, which will be issued to all quota holders in early June 2008.
Notes for Editors
1. The Rural Payments Agency is an executive agency of the Department for Environment, Food and Rural Affairs (Defra). It is the single paying agency responsible for the administration of the Single Payment Scheme in England and for certain schemes throughout the UK.
2. This increase in quotas will apply equally to all EU member states.
3. Information on the Rural Payments Agency can be found at www.rpa.gov.uk.
4. Media contact: Ciaran Baker, RPA Press Officer, 0118 9687680. E-mail: Ciaran.baker@rpa.gsi.gov.uk
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