Dairy farmers face 38m super-levy

By FWi staff

DAIRY farmers with wholesale quota face a super-levy of £38 million, according to Intervention Board officials.

Milk production for the year ended 31 March was 151 million litres (1.09%) over quota – one of the biggest overshoots ever.

Early estimates suggest the overshoot could be reduced by 15.5m litres due to producers converting from direct to wholesale quota. But IB officials say temporary conversion back the other way would cancel that out.

As a result, farmers are likely to be fined 25.53p for each litre of milk produced over a yet-to-be-announced threshold.

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