More co-ops launch phased payment as EU action on superlevy unlikely

Agriculture Minister Simon Coveney has warned action to ease the super levy burden at EU level looks unlikely.

With Ireland 6.44% over quota entering September, and several co-ops running at 8-9% over quota, more co-ops are announcing phased payment schemes to help with potential superlevy bills.

Farmers are also taking action, resulting in national over-production falling from 6.79% over quota at the end of July to 6.44% over quota at the end of August. But this compares to 0.36% under quota 12 months previously, when Irish farmers were on their way to an eventual superlevy bill of about €10.5m.

Among the co-ops to announce phased superlevy payment is Barryroe in west Cork. The co-op will deduct 14.33 cent per litre (50% of the 28.66 cent per litre superlevy bill) once a supplier goes over their full quota. The other 50% will be collected from suppliers between 2015 and 2016, in 10 equal instalments, in months agreed with suppliers.

Barryroe will pay the Department of Agriculture in full when the superlevy falls due. No interest will be charged to suppliers on monies advanced on their behalf. The purpose of this arrangement is to spread the cash-flow demand on suppliers, and facilitate a smoother transition into the post-quota era which starts next April.

The final 2013/14 bill for Barryroe Co-op suppliers totalled €589,474. For suppliers with a quota under 350,000 litres, no penalty was paid on milk up to the 350,000 threshold, as there was sufficient flexi-milk available to cover this priority category. For suppliers with a quota over 350,000 litres, flexi-milk of 14,681 litres per supplier was available, after which super-levy applied.


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