WIREDGOV

Rural Affairs Minister Elin Jones launched the consultation today 20 January and has asked for views by 17 February 2010.

The Dairy Fund is a €300million package for the EU to assist the dairy industry, announced by the European Union on 21 October 2009.

The Welsh Assembly Government, alongside other UK Agriculture Departments, is consulting on two options for distributing the fund. The issue is being managed at Member State level because of its close relationship to milk quotas, meaning a joint approach for Wales, England, Scotland and Northern Ireland is being sought.

The following are the options for consultation:

• Option 1: a payment of 0.2 pence per litre of production during the 12 month period of 1 October 2008 to 30 September 2009 to each dairy farmer. This is considered the period of greatest market disturbance.

• Option 2: a payment of 0.5 pence per litre on the first 100,000 litres of production plus an estimated payment of 0.2 pence per litre on production over 100,000 litres during the specified period.

Criteria for both Options 1 and 2:

1. Payment will only be made to milk producers and direct sellers registered with the Rural Payments Agency during the specified period.    
2. Payment will only be made on actual production during the specified period and the quantity produced will not be adjusted for butterfat.
3. Any producer who ceased production during the specified period will receive a payment on production up to the point that production ceased.
4. To help reduce administration costs a payment will not be made to any producer whose production was less than 50,000 litres (which is equivalent to the production of 7 cows).
5. Details of the volume of milk produced by wholesale milk producers will be requested from milk purchasers. Direct sellers will be requested directly to provide details on their production.

Elin Jones said:

“I want to ensure dairy farmers in Wales receive the maximum benefit from the EU Dairy Fund and will welcome their views on the two payment options. We have a short deadline to respond to the European Commission, so are asking for input by 17 February 2010.”

EC Regulations stipulate that the decision on how the payment is distributed must be communicated to the Commission by 31 March 2010.  The Regulations also stipulate that all payments must be made by the end of June 2010.

The Welsh Assembly Government is issuing the consultation to producer representatives, but a copy of the consultation document will be placed on the Welsh Assembly Government’s website for additional comment.  Further information is available from the CAP Reform Branch on 02920 826102 or email capreform@wales.gsi.gov.uk