DEFRA launch EU Dairy Fund consultation

The Department for Environment Food and Rural Affairs (DEFRA) will ask dairy farmers to give their views on how best to distribute England’s ‚£16 million (€18m) share of the EU Dairy Fund.

The fund is intended to help farmers who have been most affected by changes in demand and prices over the last year.

Following discussions with the farming industry, the consultation presents two options for providing help to farmers, keeping administrative costs to a minimum and supporting a competitive dairy sector.

Farming minister Jim Fitzpatrick said: “Dairy farmers have faced a challenging year, dealing with the economic climate which led to a drop in global demand and dairy prices.

“The UK has one of the most modernised and efficient dairy sectors in the world, but this funding will provide some additional stability for them. This is why we are seeking the farming community’s views on the fairest way to distribute the EU Dairy Fund.”

The suggested options for distributing the fund are:

A direct payment per litre of production from October 2008 to September 2009, or

A payment per litre for the first 100,000 litres of production, with an additional payment per litre over 100,000 litres from October 2008 to September 2009.

Wales, Scotland and Northern Ireland will also consult on the same option, and an agreed approach will apply across the UK.

Dairy farmers must provide their views by February 17.