News - Welsh consult on dairy aid payment

Welsh consult on dairy aid payment

Dairy farming leaders in Wales have united in calling on the Welsh Assembly Government to act swiftly in allocating compensation from the EU emergency fund.

The chairmen of both the Farmers Union of Wales and NFU Cymru dairy committees were reacting to an announcement on Wednesday (20 January) that Wales’ rural affairs minister, Elin Jones, had launched a consultation on how the €3.5m earmarked for Wales from the UK’s €29m share of the EU Dairy Fund should be distributed.

Eifion Huws, of the FUW, told Farmers Weekly he favoured a payment of 0.5ppl on the first 100,000 litres of production, plus an estimated payment of 0.2ppl on production over 100,000 litres for milk produced between 1 October 2008 and 30 September 2009.

Mr Huws said this would favour smaller farmers in Wales who had been greatest hit by turmoil in the cheese markets. "Seventy eight per cent of Welsh milk goes into cheese production. While other markets are recovering we are all aware of the dire straights that the cheese industry is in," he said.

But NFU Cymru Milk Board Chairman, Mansel Raymond, wants to see 0.2ppl paid across the board for every litre of milk produced during this 12-month period.

"Everyone has suffered and, therefore, everyone is entitled to the same payment for milk produced," he said.

But what Mr Huws and Mr Raymond do agree on is that delays in allocating funding already agreed by Europe are impacting on farmers’

cashflows. "This money was made available last October but farmers have yet to see a penny of it," said Mr Raymond.

Elin Jones set a 17 February deadline for the consultation period but Mr Raymond said this would create unnecessary delay in getting the money to farmers. "This is an emergency fund and as such the money needs to be paid as soon as possible," he said.

The assembly government has issued the consultation to producer representatives, but a copy of the consultation document will be placed on the WAG website for additional comment.

Further information is available from the CAP Reform branch on 02920 826102 or by emailing capreform@wales.gsi.gov.uk