IRISH dairy farmers are facing huge fines from the EU for over production of milk, which is running at 5.7 per cent above the permitted level.
In the first three months of this year dairy farmers produced so much milk over the quota that it could bring a fine similar to the EU imposed fines for the whole of last year.
The 48,000 farmers who are allowed produce Ireland's quota of 1.1 billion gallons have already enough milk to generate fines of £14 million. Last year's overproduction cost £14.4 million.
The problem is more serious than in recent years because farmers are only four months into the production year which begins on April 1st.
This year, the weather has been so favourable for production that by the end of June overproduction was running at 6.7 per cent.
A major part of the difficulty is related to Bovine Spongiform Encephalopathy (BSE) and the problems it has created in the cattle trade. Cull cows that is, cows which would normally be removed from the dairy herds because of infertility, low production or old age are becoming hard to sell.
Since this time last year the price of cull cows has dropped by nearly £250 and farmers are reluctant, or unable, to sell them. The milk from these cows, which would normally be slaughtered by this time of year, is continuing to flow and it adding to the problem.
This week, the Minister for Agriculture, Mr Yates, urged dairy farmers to heed the warnings issued by the Department to plan their milk production to avoid superlevy bills.
The national chairman of the Irish Cattle Stockowners' Association, Mr Jimmy Cosgrave, has proposed that the EU should offer a premium to farmers to slaughter cull cows and take them out of the food chain, instead of killing 10 day old calves.