Dairy farmers worst hit by the current downturn in global markets will be offered free financial advice to cope with cash-flow problems.
The support will be delivered to all dairy farmers in Scotland, England and Wales who pay a levy to DairyCo.
It is in response to the recent falls in milk price, and news that Glasgow-based farmers’ co-operative First Milk is delaying payments to its producers as a result of cash-flow problems.
To qualify for free advice from a dairy consultant, producers will have to show that they are, or are about to, experience a sudden reduction in total revenue or income to their business.
They must also fall within at least one of three situations – are at risk of being unable to pay bills that are due to come in; are about to breach their borrowing limit; and have no idea of their current position as they don’t have a cash flow or any budgeting information.
The support, which will be available until April 30, will involve the dairy farmer working with a consultant to assess the immediate impact on cash flow from the dire dairy market situation.
It is hoped it will help dairy farmers to better understand what is likely to happen to their business finances and help them modify business plans and have informed discussions with their lenders, if this is necessary.
NFU Scotland’s milk committee chairman Gary Mitchell said: “Even before the First Milk announcement last week, it was clear that many dairy farmers, regardless of who they were selling their milk to, were feeling the effects of the steep downturn in dairy prices and tumbling prices for milk.
“We understand many dairy farmers may already seek consultancy advice, however we need to make sure that this is targeted towards those who don’t already utilise the services available. We can’t predict how long this downturn is going to last and we would encourage all those who have been affected to use this scheme. As a union we want as many dairy farmers to come out the other side of this in the best possible position.”
Any dairy farmers who wants to apply for help should contact Barbara Dunn at DairyCo on 02476 478684.