Super levy scare over for now

There are grounds for cautious optimism amongst the region's dairy farmers as the spectre of a big superlevy bill seems to be receding. A mere few months ago the country was 4.2% over quota but now that has been pegged back to 1.2% and Lakeland Dairies are reported to be even underneath that figure with an 0.6% excess at the end of October. In a bid to offset the pain of a superlevy penalty next April, Lakeland was making deductions from suppliers' pay cheques but so significant has been the cut in production that they have now stopped doing so. However, it is the time of year when milk production does fall back with cows housed for the most winter months. A surge in production is expected again in the New Year/early spring and farmers are being urged to maintain a disciplined approach in order to keep within the limits. There are an estimated 900 dairy farmers in Co Cavan the great majority of whom supply to Lakeland Dairies. The average dairy herd in the county is still less than 50 cows, well below the national average and substantially below some of the big dairy units in Munster. Chief Executive of Lakeland Dairies, Michael Hanley, stated that Lakeland initiated the deductions from farmers' pay cheques in order to ease the burden on suppliers at the end of the milk year. However, the co-op had stopped the deductions because of the reduction in milk supply and they would review the situation again in six to eight weeks time. He emphasised that all monies taken in the form of deductions would be returned to farmers in the event of there not being a super levy. Mr Hanley expressed confidence in relation to the overall performance of the agri industry in general. He said that Lakeland is paying a good price for milk being second from the top and exports were strong right across the globe, he added.