Monaghan IFA  Dairy Committee Chairman Seamus Brennan said that with milk
production continuing to rise well into January, it was no longer certain
that we would not exceed our 2010/11 quota by March 31st.  Whether or not a
superlevy bill materialises this year, he said it was only prudent for all
milk producers to keep factoring in the risk of superlevy fines into their
farming business plans right out to 2015, and limit their exposure to such a
crippling unnecessary cost.
“It is clear that Irish dairy farmers have the stock and the potential to
fill and exceed our existing quota and the two further 1% increases agreed
under the Health Check, especially with strong milk prices and good
production conditions.  While the quota regime remains with us, this means
that the risk of superlevy bills remains, and the only prudent approach by
farmers is to seek to minimise any costly exposure,” Seamus Brennan said.
Mr Brennan said that, while IFA would continue working with like-minded EU
countries to seek greater flexibility for sustainable expansion in Ireland
before 2015, this was in the context of a majority of member states opposing
such flexibility.  He warned that prudent planning by farmers should assume
no major change in the quota regime before 2015.
“Farmers who are close to filling their quota should seek out practical
advice from Teagasc or their co-op to minimise their exposure this year, and
for future years should ensure that their quota cover matches reasonably
closely with their production levels.  Otherwise, they could incur crippling
superlevy fines, currently amounting to €27.83/100kgs of milk, equivalent to
approximately 28.6c/l,” he concluded.