ICOS warns of huge dairy cash flow crisis

With Ireland 7.15% over quota at the start of November, and no milk processor under quota, leaving very little flexi-milk, ICOS has warned that a certain superlevy bill of up to €100 million, and the cash-flow hit of falling prices, will put enormous strain on many farmers.

“Many over-quota farmers will receive no milk cheque until next summer, and those cheques will be well behind those received this year,” said an ICOS spokeserson.

One of the worst affected co-ops, Lakeland Dairies, was 9.5% over quota entering November, facing a bill of about €10.3m. But farmers also face a possible cash flow hit of €600m across the coming milk production season, according to ICOS. That would be the impact of a feared 10c milk price cut, compared to 2014.