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Thousands of Farmers Join EU Scheme to Reduce Milk Production

28 September 2016

EU - The EU's Agriculture Commissioner Phil Hogan has announced that the €150 million Milk Production Reduction Scheme, which he announced in July, has been almost fully subscribed.

The applications were made offering to reduce production in the final quarter of 2016 by 1.06 million tonnes (of the 1.07 million tonnes available).

"I am confident that this measure, allied to others included in the July and earlier packages, will contribute further to an already stabilising market situation in the European dairy market," Mr Hogan said. He noted that signs of recovery are already evident, but reiterated that his objective was to see "improving market sentiment translated into higher farm-gate prices to the benefit of producers."

The notifications received by the Commission show that over 52,000 dairy farmers in 27 Member States have applied to participate in the scheme, with offers to reduce production in the final quarter of 2016, relative to the same period last year. The volume reductions offered vary from producer to producer, but average 20 tonnes per applicant.

At the end of the three-month period, farmers will have 45 days (to approx. mid-February) to provide proof that they have reduced production and, therefore, confirm eligibility for the aid payment of €14 per 100kg of "reduction".

This Milk Production Reduction Scheme was announced by Commissioner Hogan at the July Agriculture Council as part of a €500 million aid package for the dairy sector, which included an emergency support package worth €350 million with designated envelopes for each Member State, and a number of market measures.

TheCattleSite News Desk

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