Archive: Irish dairy herd increases, as does the risk of superlevy

Published 2 October 14

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The dairy herd in Ireland has increased in 2014 up 5.4%, compared to June 2013, to 1.23m. The Irish dairy industry is clearly gearing up for a rapid increase in production after the quota regime is removed at the end of March 2015. However, any production in the current milk year which is excess of national quota is likely to incur a superlevy fine of around €0.29/litre. Figures from the Irish department of Agriculture, Food and the Marine show that at the end of August, Irish milk production was estimated at 6.4% over quota.

The impact of falling global commodity prices on farmgate milk prices may mean that producing over quota and incurring superlevy is a costly option for some Irish dairy farmers. As a result Irish farmers may restrict production through the winter months in an attempt to reduce superlevy liability.