Explanatory Note: Allocation of Additional Milk Quota from 1 April 2009
ALLOCATION OF ADDITIONAL MILK QUOTA
EXPLANATORY NOTE
- This note sets out information on the method to be adopted for allocating the five annual milk quota increases of 1% from 2009 to 2013 agreed in the 2008 CAP Health Check.
- After consultation, Agriculture Ministers in the UK have decided to allocate the additional milk quota on the same basis as previous increases in 2006, 2007 and 2008, that is, on the basis of net quota held on 31 March preceding each increase. This option received overwhelming support in consultations across the UK. It is seen as a fair and an administratively straightforward method for allocation.
- The allocation will be made on the basis of net quota held on 31 March preceding each increase, 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 year preceding the increase. 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 quota year preceding an allocation, or
- cease production in the quota year preceding an allocation, or
- cease production at the start of the year in which an allocation is made,
will not be eligible for any additional quota. Persons giving up milk production temporarily due to justified cases of force majeure will still be regarded as milk producers. These cases will be identified by the Rural Payments Agency, where possible.
- The method of allocation will ensure that the additional quota is allocated to active producers only and in line with current production levels.
