Written by Alistair Driver
The Government has announced new funding for the dairy sector to help to help farmers overcome the impact of the coronavirus outbreak.
Dairy farmers in England will be able to access up to £10,000 each to help compensate for the dramatic fall off in demand resulting from the closure of bars, restaurants and cafes.
Some farmers have been forced to pour unwanted milk away
The impact of the lockdown measures has affected some farmers much more than others, plunging some into financial difficulties and resulting in a build of milk on farms, which is some cases has had to be poured away.
Defra said the new fund will provide support for those most in need. Eligible dairy farmers will be entitled to up to £10,000 each, to cover 70% of their lost income during April and May to ensure they can continue to operate and sustain production capacity without impacts on animal welfare.
Eligible dairy farmers will be those who have lost more than 25% of their income over the two-month period due to coronavirus disruptions. There will be no cap set on the number of farmers who can receive this support or on the total funding available.
More detail on the fund will be issued in due course
The announcement comes as the government today backed a £1million campaign to boost milk consumption and help producers use their surplus stock.
Defra Secretary George Eustice said: “Our dairy industry plays a crucial role in feeding our nation and we are doing all we can to ensure they are properly supported during this time.
“We’ve already relaxed competition laws so dairy farmers can work together through the toughest months, but recognise there is more to be done. That is why today we have kick started a new campaign to boost milk consumption and have announced a further package of funding.
“We will continue to stand alongside our dairy farmers through this difficult period”.
The dairy sector is the UK’s largest farming sector, with milk accounting for 16.85% of total agricultural output in the UK in 2018.
While many farmers have already rerouted their milk supplies to retailers and supermarkets, which have seen increased demand in recent weeks, today’s move will give the farmers in the greatest need the financial assurance to ensure they can remain operational, sustain production capacity and continue to meet animal welfare demands at this time, Mr Eustice added.
The new marketing campaign to increase consumption of milk in UK households, funded jointly by the AHDB, Defra, the Scottish Government, Welsh Government, Northern Ireland Executive and Dairy UK, will help increase sales of dairy products by encouraging the public to drink more milk.
Christine Watts, AHDB’s Chief Marketing Officer said: “This new innovative marketing campaign is a fantastic demonstration of what can be achieved when industry and Government join together to meet a common supply chain challenge.
“It will support dairy farmers and processors in driving demand for milk within households across the UK. It will link consumers’ love of the great taste of milk and dairy with how we are all having to manage these challenging times at home and at work.”
Defra said the announcement is the latest action from the government to support dairy farmers, building on the ‘unprecedented levels of support already announced by the Chancellor and our recent action to temporarily relax some elements of UK competition law to allow suppliers, retailers and logistics providers in the dairy industry to work more closely together on some of the challenges they are facing’.
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