While the reduction in the superlevy to 1.2% over quota for the end of October 2011 is a welcome development and reduces somewhat the likely exposure of farmers to a superlevy, but behind that figure is hidden a lot of problems that will result in many farmers not receiving a milk cheque until next May at the earliest, according to Mr. Pat McCormack, Chairperson of ICMSA's Dairy Committee. “Cash-flow over the next six to eight months is going to be a critical issue for some dairy farmers and a reasonable approach from banks and Co-ops will be required to ensure that farmers overcome this cash-flow problem. Ireland is still facing a substantial superlevy fine and individual farmers must take this into account when making decisions regarding milk supply up to the end of March”, he concluded.
Ends. 16 November 2011
Pat McCormack, 087-7608958
Chairman, ICMSA Dairy Committee