PRESSURE IS being exerted on Minister for Agriculture Mary Coughlan on how she should distribute the extra 24 million gallons of milk Irish dairy farmers will be allowed produce from April.
The historic increase in the rigidly enforced EU milk quota system brings to an end nearly two decades of restricted production which was aimed at maintaining the prices for farmers.
While the freedom to produce more milk on the farms is good news for farmers, it could also be good news for consumers in the long term as dairy prices have risen because of a world scarcity and increased demand.
The additional EU milk quota, which will be worth over €35 million to Irish farmers, was agreed by EU agriculture ministers meeting in Brussels early yesterday, gaining Ireland an additional 108 million litres - 24 million gallons.
The EU has eased its grip on what EU dairy farmers can produce in the context of increased world demand caused by a jump in consumption in Asia and a fall in production worldwide caused by drought in some major producing countries.
It has also decided that the union's milk quota system, in place since the mid-1980s to balance supply and demand, will be phased out after 2014.
Ireland's dairy farmers are currently allowed to produce just over 1.1 billion gallons. The national quota is divided up among the State's 20,000 remaining dairy farmers.
Each farm has its own personal milk quota.
If that amount is exceeded, the farmer is fined under a system known as the superlevy.
Announcing the 2 per cent increase, Ms Coughlan said it would come into operation from April 1st and it reflected the optimistic assessment of the future demand for milk.
"Ireland has the capacity to produce additional milk and this increase in our quotas, amounting to 108 million litres, is very useful at this stage. It is imperative that we give our milk sector the freedom to respond to increased demand," she said.
Ms Coughlan said the future of milk quotas would be discussed in the coming months in the context of the Cap "health check" which is to be carried out by the commission.
She repeated her call to the commission to ensure actions were taken within the health check to provide a smooth transition to a situation post-2014 when quotas no longer play a part in market supports.
The IFA has started its lobby to have the additional quota distributed across the board to all active producers.
However, the rival Irish Creamery Milk Suppliers' Association wants the extra quota divided equally between all milk quota holders.