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Mitchelstown News from The Avondhu

Dairygold proposes phased super levy payment scheme to assist milk suppliers

Dairygold is offering its members a phased super levy payment scheme to help them with potential super levy bills arising as a result of this year's very strong milk production. Explaining the scheme, Dairygold Chief Executive Jim Woulfe said: "Ireland is currently facing its largest ever super levy bill in its final quota year 2014/15. Dairygold is currently 9.4% over quota, so it seems inevitable at this stage that we will incur a super levy penalty next year. Our milk suppliers have indicated an ambition to increase milk production up to 60% and a majority of them will want to invest in their farm enterprises." "A high super levy penalty could place a cost burden on our milk suppliers in the last year of the milk quota regime and put a strain on their cash flow at a time when it is most needed. Therefore, we are offering our members the option to spread the repayment over three years. We believe it is an innovative offer and will be attractive to our milk suppliers, easing the cash flow demand on them and facilitating a smoother transition from the quota era to the post-quota era," Mr Woulfe added. The proposed scheme will operate with milk suppliers paying 15 cent of total super levy penalty of 28.65 c/l by April 2015, with the balance being collected in ten equal instalments between May and September in the years 2015 and 2016. This scheme is optional and suppliers will need to sign up to avail of the facility. As always, Dairygold will pay the super levy payment in full on behalf of its milk suppliers to the Department of Agriculture when it falls due.

Published: Friday 5th September 8:12am

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