Britain’s dairy farmers are to share £26million to compensate them for recent poor prices.
The aid is to be paid out at the rate of 0.2p per litre (0.11p a pint) on the milk they produced between October 1, 2008, and September 30, 2009, when ex-farm rates crashed because of the recession and dramatic fall in the sales of dairy products globally.
The cash comes from a wider EU package that is costing taxpayers £273million and which was agreed by the European Commission last year in response to the price crisis faced by farmers.
The decision on the payment came as another prominent Scottish dairy herd was dispersed at Carlisle.
Rural Affairs Cabinet Secretary Richard Lochhead said Scotland’s share of the cash amounted to £2.548million.
The distribution based on milk production was the fairest way of supporting dairy farmers, many of whom lost considerably more on their milk than the compensation offered.
Payments are expected to go out from mid-April.
Mr Lochhead added: “Many of Scotland’s dairy farmers have suffered significantly over the past year and this payment will be a small, but nonetheless welcome boost to those who have experienced difficulties. We will continue to do everything possible to ensure a future for the industry during a challenging economic climate.”
Only farmers producing more than 50,000 litres (10,995 gallons) will be eligible for the aid.
NFU Scotland dairy committee chairman Jimmy Mitchell said: “The fund, while most welcome, is a bit of a sticking plaster.”
Mr Mitchell said the union’s focus remained on securing improved milk prices for its members.
He added: “Wholesale prices for cheese, butter, cream and milk powder remain significantly higher than a year ago and demand for fresh liquid milk is buoyant. Despite these positive signs, very few milk producers in Scotland have seen any significant improvement to their milk price for months now and we continue to meet and discuss this situation with Scotland’s milk purchasers, highlighting the urgent need for farm-gate prices to improve.”
The Carlisle sale marked the end of the Holywood herd of pedigree Holsteins run by Robert and Mary Whiteford, of Abbey Farm, Dumfries.
They have sold up so they can “discover new opportunities”, although may return to dairying at some point in the future.
The first sale involved 250 recently calved and close to calving cows from the 800-strong herd.
A dozen sold for 2,000gn or more. Top price was 2,700gn for Holywood Noah Della and Holywood Talent Vaakje bought by T. Forsyth, Isle Farm, Whithorn, Newton Stewart, and Cottam Ltd, Wardwarrow, Holmrook, Cumbria, respectively.
The next batch of cattle from Holywood will be sold by Borderway operator Harrison & Hetherington on March 24. The young stock – 105 in-calf heifers, 102 bulling and maiden heifers and 117 heifer calves – will be dispersed at Carlisle on April 7.
An H&H spokesman said: “As one would expect for such a well regarded herd there was a packed ringside of local and distant pedigree and commercial buyers who bid strongly all day.
“In line with the current trade for dairy stock around the UK prices were sensible if not extravagant. There is little doubt that the purchasers should be back in three weeks for more.”