Major superlevy bill could slow EU milk production

With milk production up strongly on previous years across Europe many countries are at risk of a significant superlevy bill, which could reduce production in the coming months according to DairyCo.

The latest figures for EU-28 milk deliveries show that production remained strong in September, up 4.6% compared to September 2013.

As quota levels remain static this year, the increase in production could place a number of nations at risk of superlevy according to DairyCo.

It says countries incurring superlevy in 2015 may feel the effects more significantly than in the previous year, given the current downward pressure on milk price.

Therefore, it says there is potential that EU production could slow down in the last part of the 2014/15 milk year.

Latest figures from the Department of Agriculture, show that Ireland was 7.15% over quota in October. This compares to the published position in October 2013 where Ireland was 0.90% over quota.

Minister for Agriculture Simon Coveney has said in preparing their enterprises for the post quota era, he has at all times urged that dairy farmers have regard to the fact that milk quotas would remain in place until April 2015, along with the associated superlevy regime.

“I would again urge farmers to use the time period between now and the removal of milk quotas to identify, with their dairy adviser, steps to manage both their milk supply and their dairy herds so that they have an efficient herd as they enter the post quota era,” he said in a recent update.

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