The first details were unveiled this week of another €500m aid package from the EU to help restore market balance and improve prices paid to European farmers.

Making the announcement on Monday, European Commissioner for Agriculture and Rural Development Phil Hogan emphasised that there is no more budget available, so it is up to member states to make the best use possible of this latest aid. It comes on top of a €500m package announced last September.

However, this latest package is different to that from 2015 and there will be no repeat of the flat-rate payment of 0.23p/litre paid to dairy farmers at the end of last year. Instead, there will be €150m made available to support EU-wide voluntary milk supply reduction measures, with a further €350m of conditional adjustment aid to support vulnerable livestock sectors.

Support

In theory, therefore, the €350m could be used to support beef, sheep or pig producers, as well as dairy farmers. However, just how this money will be allocated remains unclear.

Some of it could be used to top up the voluntary milk supply measure, while there is also the flexibility for national governments to 100% match-fund. The total UK allocation is €30.19m.