Welsh farmers back EU dairy fund

THE Farmers Union of Wales is giving its overwhelming support for an EU dairy fund distribution that favours smaller dairy producers.

The EU agreed in December to allocate €300m to help the European dairy sector which has been severely affected by low milk prices with Welsh producers in line to receive around £3m.

“Following consultation via our county branches the overwhelming majority of members have agreed that Wales should opt for a payment of 0.5 pence per litre on the first 100,000 litres of production plus an estimated payment of 0.15ppl on production over 100,000 litres,” Eifion Huws, chairman of the union’s milk and dairy produce committee, said today (Wednesday, February 17).

“This will target smaller businesses which, on average, have a lower profitability per litre.

“Members have acknowledged the fact that all dairy producers have suffered as a result of low farmgate prices and high production costs, and that the profitability per litre was highly variable between farms.

“However, it is agreed that on average smaller producers had higher production costs and were by definition unable to benefit from production bonuses and other production related advantages.

“We are hardly talking about large sums of money here in any case - but the fund will nevertheless provide some relief for struggling dairy producers and directing support where it is most needed.”

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