The preliminary output estimate for the end of the final milk quota year is that Ireland will finish 4.34% over quota resulting in a superlevy bill in the region of €69m.

The 2014/15 quota year expired on March 31 last and the 4.34% figure is an estimate based on returns to the Department by the co-ops, taking into account the relevant butterfat adjustment.

The confirmed final position will not be available until August when all flexi milk is distributed and all returns have been received.

The facility for dairy farmers to pay the bill in instalments, as announced by Commissioner Hogan, is designed to help them to deal with the cash flow challenge.

The Department of Agriculture is currently finalising the implementation details and will be making a further announcement in this regard very soon.

Speaking in the Dail the Minister for Agriculture Simon Coveney said officials in his Department are currently putting procedures in place for the collection of the first instalment from farmers before the end of September

Officials are also working on the introduction of a scheme to collect the remainder of the instalments in September 2016-2017.

He said he expected to be announcing the details of the scheme in the near future

The Minister said he is satisfied that this approach strikes the balance between flexibility for farmers while also safe guarding the exchequer.