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Allocation Of €11.5 Million Dairy Compensation Measure

23 February 2010

IRELAND - The Minister for Agriculture, Fisheries and Food, Brendan Smith TD, announced details of how the EU emergency dairy compensation fund will be allocated in Ireland.

This fund is part of a package of measures agreed at the Council of Agriculture and Fisheries Ministers. The Commission made €300 million available to support dairy farmers across the EU who were severely affected by the fall in milk prices. Each Member State's share was calculated based on their milk production in the 2008/2009 year, and on this basis Ireland received €11.5 million. Member States must make the payments by the end of June 2010, and are required to notify the Commission of the method of allocation by the end of March.

Minister Smith said he had decided to allocate the money on a flat rate basis after consulting with the various stakeholders in the dairy sector.

"I believe this is the optimum method of allocation to those dairy farmers most affected by the crisis" he said. "My Department has already notified the Commission of this decision, and in order to keep red tape to a minimum, I have decided that dairy farmers will not have to submit an application for payment. My Department will pay eligible farmers in the most efficient way possible, using the Single Payment System. Arrangements are currently being finalised and I expect payments to issue within the next few weeks".

The exact amount payable to each farmer will not be known until the data has been processed to identify eligible cases, but it is estimated to be around €580 per farmer.

Concluding, Minister Smith said that this payment will be a welcome boost to dairy farmers, who have experienced serious difficulties over the past year, and that he would continue to maintain close contact with the EU Commission and the Council of Ministers to ensure that market measures are activated at appropriate levels to support the market.

TheCattleSite News Desk



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