Milk prices are cut as superlevy ‘easy pay’ arrives

Milk prices fall but payment scheme eases cash flow concerns
What do you mean the price of my milk is falling?

THERE was good and bad news for Galway’s dairy farmers late week – on the positive side the new instalment scheme for the paying of the superlevy bill was confirmed . . . but May milk prices took a hit of two cent per litre.

While farmers had been hoping that the three year staggered payment of the 2014/2015 superlevey bill would be in place by May 1, its confirmation last week has been welecomed by the dairy sector.

Galway IFA Dairy Committee Chairman, Charlie Whiriskey, told the Farming Tribune said that thile the announcement of the scheme was a month behind schedule, it was to be welcomed.

“The scheme will allow farmers to pay their superlevy bill over the next three years without any interest being added on. It will certainly ease the cashflow pressures, especially on suppliers who were well over quota,” said Charlie Whiriskey.

According to Minister for Agriculture, Simon Coveney, the scheme would significantly ease the cashflow burden for farmers facing a superlevy bill during 2015.

“I am satisfied that this approach will be of significant benefit to all dairy farmers facing a levy in 2015, including those considering expansion,” said Minister Coveney.

Applicants for the scheme must have completed their agreement forms with their milk purchasers by June 30, 2015, with the first instalment of the three to be paid by October 1, 2015.

The second instalment must be paid by September 30, 2016 and the final one by September 30, 2017. The interest relief (zero interest) on the scheme is provided by the Government in the form of State Aid.

Milk suppliers across the country last week had to take an average cut of around 2c/l for their produce due to ongoing world market pressures.

Arrabawn suppliers took a cut of 2.1c/l for May, bringing the price down to 29.34c/l, still only just behind Glanbia and Aurivo in the milk pay league. Aurivo are now down to 30c/l.

“I suppose the hope now is that we’ve turned the corner and that the price will stabilise. Milk supplies are back in Europe since the start of the year while we hear of dairy cows being culled in New Zealand,” said Charlie Whiriskey.