First exchange still being processed

By Mairead Lavery

Even though applications closed for the first milk quota exchange almost a month ago, no clear idea has yet emerged as to what price milk quota will make in the different co-op areas.

It is unlikely that these details will emerge for another few weeks as many of the co-op's contacted by the Farmers Journal yesterday are still in the process of answering queries on the individual files.

What is clear however, is that demand for milk quota in every co-op bar one has outstripped the volume that has been offered for sale. The exception is Premier - the liquid milk division of Glanbia. Here almost 13 million litres has been offered while demand is in the region of 5.7 million litres.

According to the co-ops, most sellers have pitched the price at between 15 and 20c/litre. However, they were unclear as to what price will apply in the final shake up.

Earlier this month, the Department of Agriculture revealed that 850 farmers had offered 125m litres (27m gallons) to the exchange. An estimated 4,700 farmers made applications to buy.

The following are the provisional estimates by co-ops of the offers and demand for milk quota from the exchange at the time of going to press.

Glanbia

Supply: 135 sellers offering 23 m litres

Demand: 1,027 buyers looking for 38.16 m litres

Premier

Supply: 51 sellers offering 12.825 m litres

Demand: 127 buyers looking for 5.657 m litres

Kerry

Supply: 166 sellers offering 18.16 m litres

Demand: 752 buyers looking for 29.51 m litres

Dairygold

Supply: 125 sellers offering 18 m litres

Demand: 1,100 buyers looking for in excess of 30 m litres

Connacht Gold

According to a spokesman demand and supply is closely balanced with 50 suppliers applying to buy quota from the exchange and 34 suppliers offering to sell.

Wexford

Supply: 12 sellers offering 2.1m litres

Demand: 150 buyers looking for 7.4m litres

Town of Monaghan

Supply: 10 sellers offering 1 m litres

Demand: 70 buyers looking for 1.75 m litres

Bandon

Supply: 12 sellers offering 2.724 m litres

Demand: 110 buyers looking for 6.81m litres

Newmarket

Supply: 5 sellers offering 450,000 litres

Demand: 37 buyers looking for 1.3 m litres

Centenary Thurles

Supply: 20 sellers offering 2.5 m litres

Demand: 120 buyers looking for 3.9m litres

Barryroe

Here 2.4 m litres has been offered to the exchange while the demand is 3.5 m litres

Arrabawn

Supply: 20 sellers offering in the region of 4 m litres

Demand: 160 buyers looking for almost 7 m litres

Drinagh

Supply: 46 sellers offering 3.2 m litres

Demand: 171 buyers looking for 5.4 m litres

Country just 0.37% under quota

Worries about superlevy strengthened this week as figures released by the Department of Agriculture show that the country is just 0.37% under quota as of the end of November.

Over the past three months there has been a dramatic upsurge in milk supplies mainly due to milder weather during September and October. While it was expected that supplies would slacken off in November, this has not happened and some co-ops are warning that supplies are still ahead by as much as 20% on the same time last year. Most of the big co-ops that are already over quota year to date have issued warnings to their suppliers. Of the smaller co-ops, Town of Monaghan estimate if the country goes over quota its suppliers could face a superlevy bill of €750,000 while Wexford Co-op is already 2.2% over.

Chairman of the ICMSA Dairy Committee has warned farmers not to be complacent, especially when faced with the prospect of a superlevy fine of 30c/litre. He said that Temporary Leasing available in January would give farmers the chance of getting extra quota.