Increasing milk supplies have brought into focus the size of Ireland’s potential superlevy bill next April.
In a statement, deputy president of the Irish Creamery Milk Suppliers Association (ICMSA), Pat McCormack, said: “Barring an unforeseen and very radical event, that we’re going to incur a superlevy this year.” The details of a superlevy bill won’t be known till next summer. “We can safely assume that it will be in excess of the €16.5 million that we had to pay in 2012,” he added.
This being the case McCormack, who is also chairman of the Dairy Committee, believes “there will be farmers taking precautions such as purchasing any quota available in this exchange to minimise the possibility of a 28.65 c/L superlevy charge in the final year of quotas”.
He said this situation “contributed to the considerable degree of activity to coincide with last Friday’s closing date” to purchase quota.
According to McCormack: “For whatever reason, there’s a group who are exiting milk supplying altogether.”
Last Friday represents the last year for this group to sell their quota and he noted that “if they’re realistic about the price at which they’ll sell then I would expect a degree of pick-up from those suppliers looking for cover for the supply year 2014-2015”.
Related:
‘Price outlook positive but superlevy looming’
Ireland was under quota by three per cent for 2012/2013
Ireland heading towards super levy milk fine