IFA warns on quota price rises
Kiersey said the imbalance is clear to see in the current milk quota trading phase, with 4,151 buyers — almost as many as in last year’s two phases — and only 222 sellers. “With less than four years left of the milk quota regime, farmers should decide how much to pay for quota on the basis of what they can afford, remembering all the time that the cost of super-levy is 28.6c/l,” said Mr Kiersey.
According to IFA, the European Commission has made it clear it has no plan to compensate farmers for loss of quota value. “For the next three quota years, it will only make sense to purchase quota to avoid superlevy,” said the dairy farmers’ spokesman.
He said there were early indications from co-ops that farmers have continued to pull back from over-quota positions in October. But the likelihood remains that annual supplies will exceed the national quota. Mr Kiersey said: “Pulling back at this relatively early stage is difficult for farmers, bearing in mind that they will also have to minimise supplies in early spring. However, the consequences of ignoring superlevy, at 28.6c/l, could amount to €14,300 for a 250,000 litre supplier who exceeds their quota by just 20%.”
