Farmers could face €140m superlevy fine after milk supply surge
A massive surge in milk supplies since April this year means dairy farmers could be facing a €140m superlevy fine next spring.
However, a major pull back in milk output is expected in the remaining months of 2014 and into 2015.
Milk deliveries have increased by 240m litres over the last four months and processors have warned that dairy farmers will face a massive quota fine if current supply trends continue.
This has been a record year for milk production, with supplies driven on by excellent grass growth. Consequently, milk intake at the co-ops to the end of May was almost 14pc up on 2013, and 9pc over quota, before easing back to 7pc over quota at the end of June, with the supply up 10pc on last year's intake.
The situation at the end of July will be announced by the Department of Agriculture within the next 10 days.
Glanbia has confirmed that, when combined with Premier, the company is currently 41m litres over quota.
Week-on-week supply is currently running 4-8pc higher than in 2013 at the individual processors around the country, with the over quota situations varying between 1pc and 8pc. The exception is Lee Strand Dairy at 8pc under quota on a small intake.