The Farmers' Union of Wales today urged the Welsh Assembly Government to distribute EU emergency aid monies directly to dairy farmers in Wales following a meeting of the union’s finance and organisation committee.
EU member states recently agreed the UK will receive _29.26m of the proposed _300m aid package for dairy farmers struggling to cope with low milk producer prices.
EU agriculture commissioner Mariann Fischer Boel first announced the aid package back in October following months of protests and lobbying from dairy farmers. The exceptional measure was designed to ease the financial struggles of the worst affected EU farmers.
The finance and organisation committee objected wholeheartedly to payments being proportional to milk production or quota held, on the grounds that, on average, farms with higher production/quota get more money per litre for milk, due to production related bonuses, and also benefit from economies of scale such as cheaper feed.
Members felt that, ideally, they would like to see a system that benefits those with the greatest needs. However, they recognised that this is unlikely to be practical as it would involve individual assessments of every dairy farm.
FUW milk committee chairman Eifion Huws said: “We, therefore, support a system where all dairy farmers receive the same amount, on the grounds that this is practical, easily administered and is more equitable than a system that would, in many cases, see the most profitable businesses receiving more than those in greater need of the money."