MILK BUY UP SCHEME TO KICK IN BY OCTOBER

A NEW package of support measures for the European dairy sector, worth € 150 million, will encourage a significant reduction in milk production by the end of the year, by paying farmers on a per litre basis to cut milk supplies. The voluntary scheme has come with a warning from the European Commission that this is the final package of measures to tackle the deepening dairy crisis, Vice President of European Parliament, Mairead McGuinness MEP has said.

“Payment, to reduce production, is expected to be around 12- 14c per litre of milk not produced in the period from October to December 2016, when compared with same period in 2015. The scheme will run on a first come, first served basis,” McGuinness explained. A further element of the package, announced by EU Agriculture Commissioner, Phil Hogan, is worth € 350 million in so called conditional adjustment aid. This gives Member States flexibility to respond to the crisis in the dairy sector and other vulnerable sectors, including grain. Ireland is set to receive € 11 million under this heading. “In trying to restore market balance in the European dairy market, we must be mindful of the wider context of US expansion and how this will impact on our efforts in Europe. In September 2015, the Commission announced a € 500 million support package, this was followed by a second set of measures announced in March of this year. “The prolonged crisis in dairying requires a response, to bring supply into line with demand,” said McGuinness, a member of the European Parliament’s Agriculture Committee. “Farmers will want to see the full details of the buy up scheme as soon as possible,” McGuinness added.

Since 2014, an additional € 1.5 billion has been allocated to farmers to manage the unprecedented situation in the markets.

Commissioner Hogan also announced the extension of public intervention for Skimmed Milk Powder and private storage aid schemes until February 2017.