Quota Exchange Information
What is the Quota Exchange?
The quota exchange was introduced in March, 1980, as a new and equitable
method of transferring quota. The exchange is well-accepted by producers
and the industry in general. In terms of the number of transactions, the
quota exchange is by far the primary method of buying or selling quota
for most producers. The exchange is simply a means by which producers
can buy and sell quota.
The monthly exchange is used to meet the following objectives:
- Provide equal opportunity for all producers to buy and sell quota;
- Operate independently and with a minimum of DFO involvement;
- Reflect the value or upper value limit of quota at all times;
- Not be subject to manipulation or exploitation;
- Be the most cost-efficient quota transfer system at the least possible cost.
How Does it Work?
The quota exchange operates by determining the price at which the volume
of quota offered for sale will be equal, or most nearly equal, to the
volume of quota bid for. Producers bid to buy or offer to sell quota by
MILKLINE (DFO's interactive phone system) or by logging in on this website.
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