EU Commissioner for Agriculture Phil Hogan has warned there is no prospect of avoiding the threat of massive superlevy bills facing a number of member states, including Ireland.

In the starkest warning to date, the commissioner told the council of ministers on Monday that farmers can best reduce exposure to superlevy bills by reducing production. Hogan said: “Member states and farmers have to understand that the rules are not going to change.” European milk production is 5.5% ahead of last year.

The Department of Agriculture figures for milk supply to the end of November released on Wednesday show Ireland running 6.51% over-quota. Production remains way ahead of last year, when Ireland was 1.38% over quota on 30 November.

Current figures would leave Ireland on course for a superlevy bill of over €90m. Even after the expected severe cuts to supply next February and March, the final bill will be a record one. November 2014 production was 13% down on last year, indicating farmers are starting to act. Some dairy processors such as Dairygold and Lakeland have announced financial schemes to help farmers cope with bills.

Speaking to the Irish Farmers Journal on Wednesday, a spokesman for Commissioner Hogan confirmed there was “no room for manouevre in this, the last year of milk quotas”.

Options

While the commissioner is open to looking at any possible option to assist with payment of superlevy bills incurred, such as the timing of payment, there is no possiblity of a butterfat adjustment or other measures that would reduce the probability of a superlevy for Ireland.

Politically, there is little sympathy for the minority of countries facing a superlevy bill, with significant support in some quarters for some method of milk price support that would penalise new milk when quotas end.