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Independent.ie

Thursday 8 December 2016

Ireland set to remain under quota for 2010/11

Published 21/09/2010 | 05:00

Current indications are that Ireland is unlikely to exceed its milk quota for the 2010/2011 season, despite earlier fears that supplies were surging too far ahead.

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Ireland is running 5.59pc under quota, officials in the Department of Agriculture have confirmed.

Industry experts have said that if current milk supply trends continue, and there is no unexpected increase in spring production, the threat of a national superlevy will diminish.

However, they have warned that Ireland's chances of exceeding quota will be even higher in the 2011/2012 season because the country will be starting from a higher production base.

Kerry is running around 55m litres below quota, based on supply figures to August 31. At the same time last year, the co-op was running 80m litres under quota.

It is understood that, based on current trends, Kerry is unlikely to exceed its quota.

Figures released by Glanbia show it is running 0.6pc -- or 4.3m litres -- over quota, as of September 11, while Premier Dairies is running 1.6pc -- or 2.4m litres -- over quota.

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Dairygold was under quota by 1pc on August 31, according to a spokesman. However, it is understood that milk supplies for the first 15 days of September were running 20pc higher than the same month last year. The co-op is expecting to be on quota by early- to mid-October if supplies remain high.

Lakeland Dairies was running 5pc under quota at the end of last month, while a spokesman for Connacht Gold said the co-op was confident of coming in on, or under, quota.

Meanwhile, most co-ops have maintained the August milk price at 30c/l including VAT.

Their stance had been criticised by ICMSA dairy chairman Pat McCormack, who said farmers were irritated by the "inexplicable delays" from co-ops in passing back returns from the market and called for a retrospective top-up to be paid for the summer months.

Mr McCormack said Dutch prices for butter/skim milk powder and whole milk powder had improved by the equivalent of 1.7c/l and 1c/l respectively.

"It is quite clear that markets have improved during September, and the excuse that markets are weakening and milk price increases were not affordable is no longer valid," he insisted. He added that Fonterra's auction powder price was up by 19pc since the beginning of this month.

Irish Independent