Current information on milk quota fulfillment

The last milk quota year has now begun and this year the total national milk quota has remained the same – 781,132 tonnes. In the 2014/2015 milk quota year, the national quota will no longer be increased by one percent, as it was previously. The current milk quota year began on 1 April 2014 and will end on 30 March 2015.

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According to data from the Agricultural Data Center (LDC), from April 1 to May 5 of this year, the milk quota was fulfilled at 7.94 percent. Comparing the amount of milk purchased within the delivery quota with April of the previous year, this year, milk has been purchased by 12 percent more.

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As a result of the development of the dairy industry and the increase in milk production, the milk quota is being fulfilled more intensively. Therefore, the Ministry of Agriculture reminds that each producer must monitor the fulfillment of his quota. This means that the producer must keep records and plan the fulfillment of the milk quota on his farm (to the extent that it is not affected by external factors) in order to prevent exceeding or failing to fulfill the allocated milk quota. In the quota system, each milk quota (i.e., supply and direct sales) is administered separately, therefore, if the limiting quantity is exceeded on a national scale, the producer will have to pay a fine of 27.83 euros for every 100 kilograms of over-quota milk. The fine for the exceeded quota will have to be paid by the owner of the milk quota - the milk producer.

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Taking into account the fact that in the 2013/2014 quota year, the quota fulfillment was 99.1 percent, there is a possibility in Latvia to exceed the milk supply quota, for which the EU-set fine will have to be paid, therefore, producers need to carefully consider possible quota transactions – quota purchase, sale and quota conversion, thus, if necessary, the milk producer can seek an opportunity to reduce or increase their quota accordingly. If the farm is unable to fulfill the milk quota, there is a possibility to lease or sell part of the milk quota or, if milk production has been discontinued, then the milk quota can be waived, informing the LDC about it, which will transfer this amount to the state reserve.

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To prevent or reduce milk quota overruns, the Ministry of Agriculture proposes:

1) use transactions with milk quotas (purchase, lease, quota conversion);
2) regulate milk yield or fat percentage when planning the feeding of dairy cows;
3) increase the amount of milk intended for self-consumption – feeding heifers and calves for fattening;
4) assess the quality of the herd – increased culling of dairy cows and planned purchase or re-weaning of new heifers after the end of the quota year;
5) evaluate the insemination time of dairy cows in relation to the calving period (starting in April 2015).

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After assessing the efficiency and economic situation of the farm, the farmer should decide for himself whether to pay a fine in case of exceeding the quota or whether to reduce the amount of milk. For additional possible solutions to prevent or reduce exceeding the milk quota, farmers can contact the Latvian Rural Consultation and Education Center.

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The Ministry of Agriculture emphasizes that in accordance with Cabinet Regulation No. 1040 of September 8, 2009 “Milk Quota Administration Regulations”, milk producers who supply milk to several milk buyers must inform the Rural Support Service in writing about the milk buyer who, in the event of exceeding the milk quota, will make a payment for the producer's exceeded milk quota to the Rural Support Service.

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All information about the fulfillment of the state milk quota can be viewed on the LDC website. www.ldc.gov.lv.

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Source: Ministry of Defense