The UK government does not intend introducing a milk production reduction scheme as previously happened in the last dairy downturn in 2016.
A scheme is among three key asks by UK farm and dairy lobby organisations, including the UFU. Collectively they have called for urgent government action to save the dairy industry.
It offers businesses grants of up to £25,000
The group wants a “fully funded, government-run national production reduction scheme” to help bring supply and demand into balance, as well as Private Storage Aid for dairy products.
They have also asked government to introduce a targeted grant scheme for dairy farmers affected by the fallout from coronavirus, similar to the Retail and Hospitality Grant Scheme. It offers businesses grants of up to £25,000 to the likes of restaurants, garden centres, pubs and cinemas.
Letter
However, in a letter signed by Defra Secretary George Eustice he said that government has carefully considered proposals for a production reduction scheme, but concluded that it will not work in the current circumstances. He warned that it would not lead to less milk being produced, and would only incentivise increased culling of cows.
The industry will be able to share labour and facilities, and work together to process more milk into products
Instead, he said that government has decided to work with industry experts on a “better approach”.
That relates to an announcement last week that competition law would be temporarily relaxed to allow producers and processors to co-operate to help avoid milk being dumped on farms.
The industry will be able to share labour and facilities, and work together to process more milk into products such as butter, cheese and skimmed milk powder.
The response is to be led by dairy processing body Dairy UK, alongside the Agriculture and Horticulture Development Board (AHDB). Both organisations will also consider how production on farms could be temporarily reduced.
Livestock
In his letter, Minister Eustice also did not offer much hope that financial support would be made available to other sectors, although he did confirm that government will be monitoring markets closely in the coming weeks.
He did recognise that demand for various cuts of meat have dropped due to the closure of foodservice, but said that government has encouraged retailers to do more to promote steak cuts. “Although the price of beef cattle, poultry and pigs has dropped, it still remains higher than in previous years,” stated Eustice.
Read more
Milk production reduction scheme details revealed
COVID-19: Irish milk prices could fall 20% this year, warns EY report
The UK government does not intend introducing a milk production reduction scheme as previously happened in the last dairy downturn in 2016.
A scheme is among three key asks by UK farm and dairy lobby organisations, including the UFU. Collectively they have called for urgent government action to save the dairy industry.
It offers businesses grants of up to £25,000
The group wants a “fully funded, government-run national production reduction scheme” to help bring supply and demand into balance, as well as Private Storage Aid for dairy products.
They have also asked government to introduce a targeted grant scheme for dairy farmers affected by the fallout from coronavirus, similar to the Retail and Hospitality Grant Scheme. It offers businesses grants of up to £25,000 to the likes of restaurants, garden centres, pubs and cinemas.
Letter
However, in a letter signed by Defra Secretary George Eustice he said that government has carefully considered proposals for a production reduction scheme, but concluded that it will not work in the current circumstances. He warned that it would not lead to less milk being produced, and would only incentivise increased culling of cows.
The industry will be able to share labour and facilities, and work together to process more milk into products
Instead, he said that government has decided to work with industry experts on a “better approach”.
That relates to an announcement last week that competition law would be temporarily relaxed to allow producers and processors to co-operate to help avoid milk being dumped on farms.
The industry will be able to share labour and facilities, and work together to process more milk into products such as butter, cheese and skimmed milk powder.
The response is to be led by dairy processing body Dairy UK, alongside the Agriculture and Horticulture Development Board (AHDB). Both organisations will also consider how production on farms could be temporarily reduced.
Livestock
In his letter, Minister Eustice also did not offer much hope that financial support would be made available to other sectors, although he did confirm that government will be monitoring markets closely in the coming weeks.
He did recognise that demand for various cuts of meat have dropped due to the closure of foodservice, but said that government has encouraged retailers to do more to promote steak cuts. “Although the price of beef cattle, poultry and pigs has dropped, it still remains higher than in previous years,” stated Eustice.
Read more
Milk production reduction scheme details revealed
COVID-19: Irish milk prices could fall 20% this year, warns EY report
SHARING OPTIONS