Hard-pressed UK dairy farmers to receive a one-off support payment

In Scotland, Rural Affairs Secretary says Scotland's share is disappointing
In Scotland, Rural Affairs Secretary says Scotland's share is disappointing

Hard-pressed UK dairy farmers will receive a one-off support payment to help with their cash-flow problems stemming from the current low prices for milk and other produce, the Environment Secretary Elizabeth Truss has announced.

In England, dairy farmers will share £15.5 million in recognition of the prolonged period of low prices in this particular farming sector. In England this will be a payment based on milk production, meaning that each farmer will receive on average £1,800.

But in Scotland, Rural Affairs Secretary says Scotland's share is disappointing.

He said: "At first glance this allocation on which we were not consulted is very disappointing for the dairy industry in Scotland. This appears to take no account of the challenges facing Scottish farmers such as the wet weather and issues also facing our lamb sector.

"Our farmers have already lost out the full £190m convergence uplift and on the &1m red meat levy lost to Scotland annually - and yet again find themselves short-changed by the UK Government. It's third time unlucky at the hands of DEFRA.”

The UK’s overall direct aid package is worth £26.2 million, the third largest of all the member states.

Environment Secretary Elizabeth Truss said: "We recognise that many dairy farmers are suffering financial difficulty at the moment and the support announced today will offer some relief.

"Dairy farmers are a vital part of our £100 billion food and farming industry. I want to support the industry to become more resilient and ready to take advantage of the growing demand for British dairy both at home and overseas.

"While it’s right that the immediate focus is on support for farmers’ cash-flow it is equally important that we help build for the long term. Developing a futures market will help farmers manage volatility and we are pleased that the Commission is taking this forward. We are also working with the Commission to look at ways of bringing greater fairness and transparency to the supply chain, using the success of our Groceries Code Adjudicator as a model that could benefit the whole of Europe."

Upon hearing the news, NFU President Meurig Raymond said: “The allocation of EU funds to English and Welsh dairy farmers will provide a welcome cash boost for thousands of those are experiencing devastating price cuts and market volatility.

“It is important now that this money is distributed on time and without the burden of unnecessary red tape. We urge the Rural Payments Agency to ensure that all eligible farmers are paid by the end of December, as promised by the Secretary of State.

“We continue to press ministers to recognise that all sectors are suffering cash flow problems. We urge Defra ministers to take up options to release funds such as agri-environment part payment and BPS as soon as possible.”

NFU dairy board chairman Rob Harrison said: “AHDB figures show that average UK milk prices have fallen by 25 percent in the last year, but that hides the variance that we currently see in the sector. Some First Milk farmers have seen their milk price halve in the same period – from 30.52ppl in July 2014 down to around 15-16ppl this July - so thousands of British dairy farmers will welcome this cash boost.

“However, we must keep this in context. Although it is encouraging to see the EU Commission and British government recognise the extent of the dairy crisis, British dairy farmers, on average, were £10,000 worse off in July this year compared to the same time 12 months ago. How much difference will the average payment of £1,800 make?

“The allocation of the EU farming support package is far from the end of the story. We will continue to urge government, processors and retailers to work with farmers for more fair and transparent contracts, stronger producer groups and the development of a futures market.

“In addition, dairy products must be more clearly labelled as British and the EU must commit to a technical review of the dairy intervention scheme.”