Dairy producers are being encouraged to assess their business needs before applying for €150 million EU volume reduction scheme.
The European Commission revealed details of the package in July, allocating €150 million as an incentive to dairy producers across the European Union to reduce production and €350 million in national envelopes to member states.
Applicants can apply for the volume reduction scheme from 11 September, with the application deadline for the first ‘reduction period’ being 21 September.
To apply for volume reduction, producers must plan to reduce their cows’ milk deliveries by at least 1,457 litres in the relevant reduction period.
The maximum that can be applied for is a 50 per cent reduction of the cows’ milk produced in the reference period.
Producers will be paid €14.00/£11.87 per 100 kg (€14.42/£12.23 per 100 litres) for the amount of cows’ milk eligible for payment.
The exchange rate is that set by the European Central Bank on 31 August 2016.
'Lose out on vital money'
Graeme Kilpatrick, NFU Scotland’s Dairy Committee Chairman said the package is a "positive move" for dairy farmers across the country who have been "struggling for some time to survive."
"However, this funding in itself won’t solve the industry’s problems and we continue to liaise with various stakeholders to assess ways in which practices can be improved to the benefit of the industry," Mr Kilpatrick said.
"Dairy producers must assess, on an individual basis, whether the scheme is of value to their business.
"With the application window opening on Sunday 11 September for the volume reduction scheme and closing on 21 September, producers are urged to make sure their applications are filled out correctly, are submitted on time and have the relevant documents attached. Otherwise, they could lose out on vital money.
"As far as NFU Scotland understands, neither Scottish Government or the Rural Payments Agency are sending anything direct to farmers about this scheme.
"This is very disappointing given milk producers have been facing the longest period of low prices that can be remembered and which has been devastating to the industry.
"With a scheme designed to help they should be doing more and speaking to dairy farmers directly," Mr Kilpatrick concluded.
