Milk Supplies Slow Following Over Quota Warning

€30m Milk Super Levy Bill Warning

With a €30m Super Levy Bill looming, 5% of suppliers have already filled their quotas.

October milk supplies have crashed by 10% to 15% compared with the same week in 2010 as farmers begin reacting to over quota warnings.

The Irish Farmers Journal reports that some co-ops have seen volumes drop in October, by up to 18% per week, as farmers switch to once-a-day milking and dry off cows, having already filled their available quotas.

Latest figures from the Department of Agriculture show that the country was 2.41% over quota at the end of September.

This is a marginal improvement on the end of August position of 2.82% over and 3.76% over at the end of July. However, the country was 4.08% under quota at the end of September 2010, but still came in just 0.4% under quota at the end of the 2010/2011 milk quota year.

If the country finishes the year at the current level of over-supply, the potential Super Levy fine could exceed €30m.

Co-Op’s at Arrabawn, Centenary Thurles, Dairygold, Drinagh, Lisavaird, Tipperary and Wexford are all reporting October supplies down by between 10% and 15% week on week compared with last year, with Glanbia experiencing a slower decline in supplies, with their volumes down 8%.


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