Compensation under Milk Reduction Scheme cut for Phase 2 applicants
Farmers applying to Phase 2 of the Scheme will receive less than those who applied under Phase 1
Dairy farmers who successfully apply to Phase 2 of the EU’s Voluntary Supply Management Scheme will receive less than farmers in Phase 1.
The Department of Agriculture, Food and the Marine today announced the results of Phase 2 of the scheme for the dairy sector.
This phase of the scheme covers reductions in the three-month period commencing November 1 to January 31 2017.
There were 556 applications from Irish dairy farmers for this phase, with a total proposed reduction of approximately 6.4m litres. Across the EU there were applications for 98m litres of reductions.
Ireland had the highest rate of take up of the scheme with some 4,500 dairy farmers applying to take part before the deadline last month.
The significant subscription rate for Phase 1 of the scheme has meant that less than only 1% of the overall budget is available for this Phase 2.
The Department said that this was not enough to cover the volume of applications received and so the European Commission has applied a coefficient of just under 0.125 to all applications.