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CAP Reform Present Mixed Bag to Dairying

29 November 2012

UK - Dairy UK has published a briefing for decision makers and opinion formers on CAP Reform and says that the current round of proposals presents a mixed bag of threats and opportunities for the UK dairy industry.

Commenting on the publication of the new Dairy UK Policy Briefing, Director General Jim Begg said: “We are now at the business end of the current round of proposals and in summary they are a mixed bag for our industry.

“The importance of CAP Reform to the United Kingdom dairy industry cannot be overstated. It provides the framework within which the industry, and its competitors, operates. It can act as a brake, or an accelerator, on the sector. It has the potential to encourage, or distort, competition and it can reduce, or create, inequalities.”

Some of the key points made by Dairy UK include:

  • The Commission’s proposals give too much emphasis to winning continued political support for the CAP at the risk of missing an opportunity to address the real challenges of the future.
  • Dairy farmers in Scotland, Wales and Northern Ireland will be disproportionately affected by a move away from historic payments to flat-rate regional payments.
  • The proposal for capping payments will act as a brake on industry restructuring and should be withdrawn.
  • Environmental measures are best delivered through targeted initiatives.
  • If the Commission’s proposals for greening are to be taken forward they need to be significantly amended to make them practical and deliverable.
  • Coupled payments, which link aid to production, could provide short term transitional support but they should be time limited to prevent distortion to competition.
  • The CAP must continue to provide an effective safety net for addressing extremes of downward price volatility.
  • The UK’s share of Rural Development funds needs to be increased to address the historic shortfall in the UK’s allocation.

Mr Begg continued: “The Policy Briefing sets out our views, but we’re also interested in the opinions of other stakeholders, so we hope that this document acts as a catalyst for feedback and debate.”

TheCattleSite News Desk

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