Rocketing milk supplies trigger superlevy threat
A dramatic turnaround in national milk supplies has given rise to fears that Ireland could incur a superlevy fine for exceeding its national milk quota in 2013/2014.
Superb weather conditions and near record milk prices have ratcheted up milk supplies at all the co-ops.
Glanbia announced yesterday that it would pay producers a base price of 37c/l for May milk, up from 36c/l the previous month. Kerry announced a price of 38c/l last week.
The board of Town of Monaghan held its milk price of 37c/l for May at a meeting on Friday night. A raft of co-op board meetings are due later this week.
However, the prospect of bigger milk cheques is being tempered by a warning that some co-ops are on track to exceed quota this year.
Milk supplies to Glanbia last month were described as "very strong" for most of the month, with total milk collections up 2.4pc on the same month last year.
A spokesman for Glanbia Ingredients Ireland said it finished May under quota by 1.3pc but added that "we are rapidly catching up on quota." Supplies for the early days of June were described as very strong.
Dairygold was 3.4pc under quota at the end of May but with increasing weekly milk supplies, a spokesman said the shortfall was "being eroded quickly". Weekly milk supplies have been running 3pc higher per week since late May.