Super Levy Likely Barring a Major Yield Shock21 November 2013
IRELAND – Super levy fears look likely, unless a ‘severe supply shock’ happens in the coming months, says the Irish Creamery Milk Suppliers Association (ICMSA).
Irish farmers could be forced to pay out for exceeding European Union quota limits after a summer and autumn surge in milk yields bolstered by 39 cents/litre prices and ‘exceptional weather’.
Last year, Irish farmers shared the cost of a €16 million euro super levy due to over production, according to the Department of Agriculture Food and the Marine.
ICMSA spokesperson, Paul Smyth, says better prices have seen Ireland drag itself out of quota deficit in May to being in excess by October.
“Based on weighted monthly supplies, Ireland is currently 0.42 per cent over quota at the end of September,” said Mr Smyth.
“This compares to 4.6 per cent under quota at the end of May. The likelihood is that supply will have increased even more in October and the country will be 1 per cent over the weighted figures at the end of the month.
“This means that the super levy will most certainly be paid at the end of the quota year unless a severe supply shock happens in the coming months.”
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TheCattleSite News Desk