In addition to the provisions for the imposition of a super levy on the volume of excess milk deliveries, the relevant EU regulations also include measures to restrict increases in the fat content of milk deliveries. Penalties are imposed when the butterfat content of milk deliveries during a milk quota year exceeds the national butterfat representative level. Each producer has a butterfat representative level, which is based on the fat content of his or her milk deliveries during either the 1984-85 or 1985-86 milk quota years, whichever is higher. At the end of each milk quota year, milk deliveries of each individual producer are adjusted to take account of the difference between the actual fat content of the producer's milk deliveries and his-her butterfat representative level. The actual milk deliveries are adjusted upwards or downwards by 0.18% for each 0.1 grams/kg difference between actual fat and butterfat representative level.
Each year every co-operative-dairy submits details of the aggregated total of their producers' actual deliveries and fat adjusted deliveries. On the basis of these figures, the overall totals at national level are calculated by my Department and, in accordance with the relevant provisions in the EU regulations, super levy liability is calculated on the higher of the two quantities, that is, actual or fat adjusted milk deliveries, provided that this quantity exceeds the national quota.
In the 1997-98 milk quota year, the fat adjusted milk deliveries exceeded the actual deliveries as well as exceeding the national quota. The super levy liability was, therefore, established on the basis of the fat adjusted deliveries. The same situation will apply for the 1999-2000 quota year. For the 1998-99 quota year, even though the fat adjusted figures exceeded the volume figures, no super levy applied as the national quota was not exceeded.
In most member states of the EU where super levy has been incurred over recent years, the levy has been established on the basis of butter fat adjusted figures. Over the past decade the trend in Ireland in relation to increases in butterfat levels is consistent with the general trend in other member states.
A decision to take measures to increase or reduce butter fat levels is essentially one for producers themselves. Such a decision would obviously take account of all commercial factors involved.