Simon Coveney (Cork South Central, Fine Gael)
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The total volume of milk supplies up to the end of December 2014, taking into account the relevant butterfat adjustment, leaves Ireland 5.93% over-quota. This figure continues the downward trend in the over-quota figure which was 7.15% and 6.51% in October and November respectively. However, it is still significantly above the 1.63% over-quota position of this time last year.

This downward trend in the over-quota figure is welcome as it reduces the exposure of farmers to super levy payments. I note that the monthly intake of milk in December was 18% down on the same month last year and this suggests that farmers are continuing to take the necessary on-farm measures to stay close to quota limits.

I would encourage prudent management by farmers of their output in these final three months of the quota regime to help ensure that they enter the quota-free world with as little debt as possible.

I have, on numerous occasions, called on the Commission to take action to mitigate the impact of superlevy fines, primarily via utilisation of an adjustment to the butterfat coefficient, as this would not have required an amendment to existing regulations. However, this proposal has not enjoyed the support of a majority of MS, some of which have gone so far as to seek to link the issue to possible measures to regulate supply after quotas are gone. Due to this opposition there is no realistic prospect of any movement on the amount of super-levy to be paid. This is also true of a butterfat adjustment, and coming into the final months of milk quotas, farmers should manage their milk supply with this in mind.

I am continuing to work closely with other EU Ministers and with Commissioner Hogan to examine if measures can be taken at EU level to minimise the impact of the superlevy bill. I have already secured the Commission’s agreement to allow for phased payments by farmers over a number of years if their co-op is willing to facilitate this. At the Council of Agriculture Ministers’ meeting this week, the Commissioner committed to a further discussion in March when a clearer picture emerges of the extent of the superlevy bill.

At national level I have impressed on the major banks the need to show flexibility in their dealings with farmers experiencing temporary cash flow difficulties in 2015. Following on from an agreement secured with the EU Commission, Co-ops may have a role in mitigating the impact of the global price downturn on their suppliers, with some flexibility in relation to the phasing of superlevy bills to farmers. Furthermore Teagasc has recently commenced a series of dairy seminars throughout the country to help dairy farmers manage through 2015, while also planning the efficient development of their dairy business in a non-quota environment. It should also be noted that the Single Farm Payment will also provide a measure of income stability during the forthcoming period.

The superlevy bill for 2015 will of course, be the last such bill and I expect all of the relevant shareholders to do what is necessary to assist farmers through this temporary difficulty.