Milk super-levy still on
MILK producers cut deliveries drastically in the closing stages of the milk year but not enough to avoid a substantial super-levy.
Approaching the end of March, daily supplies were running at about 33m litres compared with 36m litres a month earlier, according to latest Intervention Board figures.
That puts March output at an estimated 1.06bn litres in volume terms, or 1.092bn litres after adjusting for an average butterfat of 4.13%. This would put the month 56m litres (4.8%) below quota.
At the end of February the IB had the UK cumulatively 265m litres over quota. Deducting about 37m litres to account for the leap year and 56m litres for the projected March under-shoot, that leaves the UK 172m litres ahead of target.
That would generate a super-levy of about £54m – ahead of last years record bill. But this could reduce further due to permanent conversions and temporary interchanges of direct sales to wholesale quota.
• The Intervention Board has confirmed that the deadline for permanent transfers of quota for the 1995/96 milk year is April 11. Transfer forms MQ1 and MQ2A must be with the IB, or in the post, on or before that date.