Danish farmers face superlevy
Published 18 March 2008

Danish dairy farmers are potentially heading towards a superlevy bill of between Dkr 7-9bn (approx £721-£927m) for the 2007/08 milk year. Milk production has been on an increasing trend as milk prices have improved. For example, cumulative production (Apr-Dec) was 21.4m litres below quota. However, cumulative production up to February is only 2.5m litres below quota. Looking at Danish milk prices shows that in December 07, a milk price of €40.10/100kg was €10.9/100kg (37.1%) more than the previous year.

Of interest is that despite the risk of superlevy for over production, industry commentators suggest that milk prices are at such a level that milk producers in Denmark can remain profitable after paying the potential fines.

Danish quota is approximately 4.37billion litres for the 2007/08 quota year and will increase to 4.48billion litres for 2008/09 as part of the EU commissions 2% milk quota increase (see EU quota increase story).