Scottish dairy farmers are being offered the chance to apply for their share of £2.4million in EU funding.
The funding forms part of a European-wide £350million fund, established last year, to “contribute to market stabilisation”. The UK was allocated £25million, and Scotland’s share is £2.4million.
Scottish Government yesterday confirmed that the application window was now open to apply for this funding.
It said the funding was targeted towards the country’s hardest hit dairy farmers to encourage the widespread uptake of milk recording and production profiling techniques.
These measures would give dairy farmers the information they needed to help make informed business decisions, said government.
Rural Economy Secretary Fergus Ewing said: “It is clear that some farmers suffered more than others during the latest period of market instability, which put severe downward pressure on dairy farmgate prices. It is therefore only right that we deploy this EU funding to support those who were at the lower end of the milk price table.
“After taking account of the views of our stakeholders, I have decided to offer dairy farmers graduated support payments ranging from a maximum of £4,000 to a minimum payment of £1,000 towards the cost of implementing key management tools. This will enable farmers to take control of their own costs and drive stability.
“I would therefore urge everyone who wishes to do so to submit their application as soon as possible.”
The highest payment rate of £4,000 will be made available to dairy farmers on Bute, Arran, Mull and the Kintrye peninsula. Mr Ewing said the funding would “protect the supply base” for the Campbeltown creamery.
Funding of £3,250 will be made available to farmers who were paid less than 20p a litre in 2016. Those who were paid between 20 and 25p a litre will get £2,000 each, while those who received more than 25p a litre will receive £1,000.
Full guidance notes on the scheme will be made available in the noticeboard section of the Scottish Dairy Hub website from April 1.
Mr Ewing said: “Application forms can be obtained from the Scottish Government website or in hard copy from your local RPID office.”
Meanwhile, Arla has confirmed a price decrease for April 1.
The European farmers’ co-operative, which buys milk from one in four UK dairy farmers, will reduce its milk price by 0.42p at the start of next month.
The manufacturing price will reduce to 28.13p a litre, while the liquid price will reduce to 27.03p a litre.
Arla board director, Johnnie Russell, said: “Over recent weeks, the reduction in commodity prices has impacted yellow cheese, protein and spot market prices and this is putting pressure on the European market in particular. International value added markets on the other hand seem to be more stable.”
