Defra dairy aid package ‘very disappointing’ for Scotland

Scottish dairy farmers are set to receive an average one-off payment of £2,620 to help ease cashflow problems amid low milk prices.

Defra secretary Liz Truss said the support package would offer “some relief” for hard-pressed dairy farmers, many of whom were suffering financial difficulties.

But Scottish rural affairs minister Richard Lochhead described Scotland’s share as “very disappointing” and he accused the government of short-changing Scottish dairy farmers again.

See also: EU dairy farm aid package: what could you buy with £1,820?

He said: “At first glance this allocation, on which we were not consulted, is very disappointing for the dairy industry in Scotland.

“This appears to take no account of the challenges facing Scottish farmers such as the wet weather and issues also facing our lamb sector. 

“Our farmers have already lost out the full £190m convergence uplift and on the £1m red meat levy lost to Scotland annually – and yet again find themselves short-changed by the UK government.

“At first glance this allocation, on which we were not consulted, is very disappointing for the dairy industry in Scotland”
Richard Lochhead, Scottish rural affairs minister

“It’s third time unlucky at the hands of Defra.”

Defra announced that Scotland’s share of the £26.2m UK dairy aid package – the third highest of all member states – would be £2.3m.

England will receive £15.5m, Wales £3.2m and Northern Ireland £5.1m of the total EU aid package of £367m.

The Ulster Farmers’ Union (UFU) agreed the allocation was also “disappointing” for dairy farmers in Northern Ireland.

It would have “little or no impact” when set against the losses being made on dairy farms across Northern Ireland, added the UFU.

The NFU and NFU Cymru said the cash would provide a “welcome boost” for dairy farmers.

But NFU dairy board chairman Rob Harrison said: “British dairy farmers, on average, were £10,000 worse off in July this year compared with the same time 12 months ago. How much difference will the average payment of £1,800 make?”

Defra said ministers in Northern Ireland, Scotland and Wales have the flexibility to decide how they wish to allocate the funds to farmers.

In Wales, deputy food and farming minister Rebecca Evans said payments would be distributed based on how much milk dairy farmers produced in 2014-15.