Milk supply surge means superlevy fine unavoidable
Published 29/03/2011 | 05:00
A surge in milk supplies over the past month has killed off any lingering hopes of the country avoiding a superlevy fine.
While IFA urged all over-quota dairy farmers and co-ops to work closely in the coming days to avoid the cost of a "wasteful" superlevy, there was no sign of a drop in the deliveries.
Farm organisations have expressed concern for a small percentage of dairy farmers who face crippling fines as a result of massive oversupply.
With just three days to go to the end of the 2010/11 quota year this Thursday, frantic preparations were being made by those co-ops which are over quota to reduce supplies. However, processors which are under quota are seeking to maximise deliveries for this quota year.
"There is a view out there that however bad this year was on quota, next year will be even tighter and every one of my suppliers will want their bulk tank emptied [on] Thursday. They are carrying no milk into the new quota year," said one source.
In contrast, a spokesman for Dairygold said the co-op was calling on all suppliers who are over quota to withhold deliveries for three days if possible.
Dairygold was 4.5pc over quota at the end of February but this figure is likely to have increased in the past month given that milk supplies for the first 20 days of March were 17pc higher than for the same period last year.