Cash boost for dairy farmers welcomed
PAYMENTS have issued from last week to dairy farmers involved in the first phase of the EU Voluntary Supply Management Scheme, aimed at cutting production to help stabilise the milk market.
A payment of €6.5 million will be distributed between 3,500 dairymen taking part in the scheme – averaging out at just under €1,860 per farmer – for those who cut milk production in the last quarter of 2016.
Minister for Agriculture, Michael Creed, said that the payments would provide a significant cashflow boosts to the dairy farmers involved in the scheme at an important time of the year.
He said that he would like to acknowledge the initiative of European Agricultural Commissioner, Phil Hogan, in framing the scheme as part of the EU response to dairy market volatility last year.
Minister Creed also said that the €150m made available to farmers in co-operation with the Strategic Banking Corporation of Ireland (SBCI), had made €150 million in loans available to farmers in all sectors, at interest rates of 2.95%.
“This scheme provides farmers with a low cost, flexible source of working capital, which will allow them to pay down more expensive forms of short-term debt,” said Minister Creed.
Milk prices have increased significantly over recent months due to an improving global market environment with Arrabawn Co-op paying 31.74c/l (including VAT) for February milk. Aurivo paid 31c/l for February milk with most of the other co-ops hovering around the 31c/l mark (including VAT).
Galway IFA Dairy Committee Representative, Charlie Whiriskey, said that the payments being made to dairy farmers under the Voluntary Management Scheme were to be welcomed, after what had been a very difficult year for dairy farmers.
For more, read this week’s Connacht Tribune.