Milk quotas, which can be mortgaged in a similar way as fishing quotas, are currently valued at ISK 35 billion (USD 272 million, EUR 214 million).
Archive photo copyright Icelandic Photo Agency.
During the recent bidding market process on milk quotas, the real value was ISK 305 (USD 2.4, EUR 1.87) per liter, an increase of ISK 5 (USD 0.04, EUR 0.03) since the last bidding market in the spring. The total value of the entire milk quota, 114 million liters per year, is nearly ISK 35 billion.
Demand is greater than supply so it is unlikely that the value will decrease in the foreseeable future, visir.is reports.
While there are similarities between the system for fishing and milk quotas the fundamental difference is that farmers are paid by the state treasury to produce dairy products to meet the milk quotas while fishing vessel owners pay the treasury for the right to catch fish in line with the fishing quotas.