Second super levy-free year in a row on the cards

By Stephen Cadogan

Thursday, December 03, 2009

SUPERLEVY is unlikely to arise in the milk production year to next April, predicted Agriculture Minister Brendan Smith in the Dáil, where he revealed that Irish milk deliveries were just over 10% under quota at the start of November.

"When one considers that quotas have effectively been increased by only 5% in the last two years, it is clear that they are having no effect on the movement of milk prices," commented the Minister.

Ireland produced only 97.5% of its milk quota in the year to last April, thus avoiding a superlevy penalty.

While farmers here delivered milk averaging 3.829% butterfat, and our quota was calculated at 3.577% fat, the 226,779 tonnes by which deliveries were adjusted upwards for fat content still left deliveries at 5,362,932 tonnes compared to available quota of 5,501,838 tonnes.

Levies for member states which exceeded their milk quotas come to just over €99 million — with Italy paying about €45m, the Netherlands €44m, and Austria €9m.

Under-supply was greatest in Britain at 1,456,440 and France at 1,192,628 tonnes under available quotas. Romania’s 20.7% of quota was the biggest under-delivery.

This story appeared in the printed version of the Irish Examiner Thursday, December 03, 2009