Well placed to avoid a 2005 repeat of the milk super levy

MILK intake at co-ops and dairies is running well below quota for the year to date, leaving dairy farmers well placed to avoid a repeat of the heavy super levy penalties imposed on them for 2004-05.

The Department of Agriculture have confirmed that intake to the beginning of October was more than 1.5% under quota for the year to date, after adjustment for butterfat levels - despite favourable conditions for grass growth in most regions of the country.

It is likely that production in October will erode some of the remaining capacity within the quota, due to mild weather boosting milk production. But the industry should nevertheless move into the New Year with some latitude remaining for annual production to stay within quota.