Cashflow boost for dairy farmersPayments from EU's €6.5m milk reduction scheme will be made this week
Payments of around €6.5m will be made this week to 3,500 dairy farmers under the Voluntary Supply Management Scheme.
The Minister for Agriculture, Michael Creed, confirmed that payments will start to issue in the coming days to milk suppliers in respect of Phase I of the EU scheme.
The scheme was a short term market stabilisation mechanism introduced by the EU Commission last year as part of a range of tools to mitigate price volatility in the dairy sector.
Up to 4,500 farmers originally applied for the scheme but around 1,000 applicants opted against proceeding with planned output reductions.
The average payment to the Irish milk suppliers who participated in the scheme will be around €1,850.
"My Department has commenced payments under Phase 1 of this scheme which will see almost €6.5m paid out to 3,500 Irish dairy farmers who applied for aid to reduce their production in the last quarter of 2016," Minister Creed said.
"This will provide a significant cashflow boost to dairy farmers at an important time of year," he added.
The €150m scheme was introduced by the Commission to encourage milk supply reductions across Europe last year and to halt the downward slide in prices.