Ireland approves dairy milk quota allocation

The allocation of milk quota to a major research project aimed at developing profitable expanding dairy farms has been approved by Ireland's agriculture minister Brendan Smith.

This announcement comes as the dairy sector prepares to move toward the abolition of milk quotas in 2015.

The project is undertaken by Teagasc Moorepark Dairy Production Research Centre in collaboration with Glanbia, the Agricultural Trust and AIB.

Smith said it will produce valuable information on low-cost, efficient milk production that will be made available to all dairy farmers through Teagasc's advisory service. The project will also help dairy farmers to adjust to the new trading environment over the coming years.

The minister said this project exemplifies the forward-looking approach that anyone with an interest in the long-term future of the dairy sector now needs to adopt.

Quota allocations are expected to be around 125,000 litres in the current milk quota year, rising to just below three million litres in 2014-15, as the three farms in the project increase production.