More pain on way as milk prices cut again
Further blow as €16.5m superlevy fine way over €12m forecast
Dairy farmers were on the receiving end of further cuts this week, with a raft of processors moving to reduce milk prices for the second month in a row.
Kerry Group, Arrabawn, Lakeland Dairies, Tipperary Co-op, Centenary and Connacht Gold have all pulled quotes for May milk deliveries by between 1.5c/l and 2.5c/l. This follows price drops of a similar magnitude for April supplies.
In a further blow to suppliers, the Department of Agriculture confirmed that Ireland's superlevy fine will be significantly higher than initially forecast. It was originally estimated that farmers would have to pay around €12m but the final figure worked out at €16.5m.
Projections for the over quota position for 2011/12 had been put at 0.36pc, but the final figure was 1.05pc. This was due mainly to higher than expected butterfat levels.
In terms of milk prices for May, Kerry dropped its price by 2c/l to 29c/l including VAT, while Lakeland Dairies cut its price by 1.5c/l to 30c/l VAT inclusive.
Arrabawn and Connacht Gold have also pulled milk price for May. Arrabawn is down 2c/l to 28.5c/l, while Connacht Gold is down 1.5c/l to 28c/l.