26 July 2002

No super-levy due

DAIRY farmers should avoid paying super-levy on milk production for the second year running.

Provisional figures released by the Rural Payments Agency last week show that wholesale producers will remain within quota in the 2001/02 milk year.

At the end of the milk year, the national herd ended up about 100m butterfat-adjusted litres below the 14bn litres allowed.

However, that limit can change, depending on the amount of quota transferred between wholesale and direct sales pools.

But RPA figures show that, over the year, wholesale producers bought in a net 9.3m litres of quota, and leased out a net 45.5m litres to direct sellers – those who retail their own dairy products.

This means wholesale producers will end the season about 65m litres under quota, calculates Charles Holt of the Farm Consultancy Group.

&#8226 Our latest milk price table (for June deliveries) reflects changes made by three milk buyers.

Both Golden Vale and Wyke Farms have reduced their butterfat and protein payments; Golden Vale cut its price by 0.5p/litre and Wyke Farms reduced its price by 0.9p/litre.

In contrast, United Milk increased its price by 0.3p/litre after a number of cuts in recent months. &#42