The IBEC group representing the Irish Dairy Processing Industry has said EU policy clarity is essential to prepare the industry for the abolishment of milk quotas.
The Irish Dairy Industry Association (IDIA) said the abolition of quotas must be managed in a manner that allows the industry to make a gradual transition.
The IDIA wants the debate in Ireland to focus on ensuring continued profitable milk production.
Under the quota system in place since the mid 1980's, Ireland is allowed to produce 1.1bn gallons annually, and farmers have individual production limits.
Launching its report "Business Perspectives on Future Dairy Policy", IDIA Director, Michael Barry said that given that the EU Commission does not see a future for milk quotas beyond 2015, clear EU policy is essential for a transition to a quota free supply environment.
He said the Commission's CAP Health Check in 2008 is the ideal opportunity to provide this policy clarity.
Among its main points, the report recommends that the abolition of quotas must be managed in a manner that allows the industry to make a gradual transition, with the Commission continuing to have an involvement in market management up to, and potentially beyond 2015.
Mr Barry said the report highlights that the market management mechanisms of the CAP are an integral part of the abolition of milk quotas.
According to Department of Agriculture and Food 2005 statistics, the value of Ireland's dairy exports last year were €1.9 billion.
