A NEW electronic system could slash £4m from dairy farmers' costs, it was claimed this week.

Based on patented software, milkquota.com allows milk quota to be traded at the touch of a button or by telephone.

Andersons, the farm business consultants, have developed the system with the help of producers and processors, lawyers, accountants and brokers.

The company says its system does away with any administrative costs and dealing is based on a flat rate per transaction basis, rather than traditional commission charges.

Leasing deals cost £50 each; permanent transfer is £100. Intervention Board charges are included in the price.

Mr Mark Harrison, manager of milkquota.com, said the flat rate had the potential to cut almost £4m of commission charges during a quota trading year.