Quota warning on butterfat
Farmers are being warned that they may have even less room to manoeuvre on milk quota than they previously thought due to the butterfat content of their milk.
IFA dairy chairman Kevin Kiersey warned that some farmers may not realise that the superlevy fine is applied to butterfat adjusted volumes of milk production, not real volumes.
"The difference between the two can be substantial, and it is important that farmers would realise they may not have as much milk quota volume to work with as they think," he explained. "The butterfat adjustment kicks in when your actual butterfat production exceeds or falls below your reference.
"For every 0.01pc that your butterfat production exceeds your reference, the volume of milk you have produced is deemed to be nine litres more per 1,000 litres produced, leaving you with that much less quota available," he said.
A supplier with a quota of 350,000 litres, a butterfat reference of 3.58pc but a butterfat production of 3.8pc, would stand to lose over 69,000 litres of production capacity because of the butterfat adjustment," he pointed out.