Over-quota suppliers likely to face superlevy fines of 28.6c per litre

With Ireland facing a likely national superlevy fine of up to €40m, Lakeland Dairies has told over-quota suppliers to expect to pay fines of around 28.6 cent per litre.

The Cavan-based dairy processor told its members fines are inevitable for those who have exceeded their supply quota. Overall, the co-op is 3.4%, or 13 million litres over quota, with a run of heavy milk-producing weeks to go to the March 31 end of the quota year.

“December 2013 milk supplies were 27% ahead of December 2012 and there is no easing of supply,” Lakeland said in its January newsletter. “Suppliers over quota and continuing to supply are increasing their superlevy liability. The over quota position is being compounded by a high milk price, good silage and under-quota suppliers taking every action to fill their quotas.