Bates welcomes Single Payment advance for Welsh dairy producers hit by collapse of farming co-operative

2.04.00pm BST (GMT +0100) Tue 7th Jul 2009

Shadow Minister for Rural Affairs, Mick Bates AM, has welcomed the news that from October 16th Welsh dairy producers hit by the collapse of Dairy Farmers of Britain will receive an advance on their CAP Single Payment which would ordinarily be paid from December.

The Welsh Government has announced that farmers eligible for the Single Payment will receive 70% of the full 2009 payment due, to help compensate for the financial blow to around 281 dairy producers in Wales who were not paid for milk supplied to Dairy Farmers of Britain in May and early June.

Commenting Welsh Liberal Democrat Mick stated:

"This is a welcome move by the Welsh Government and I am pleased that the Minister is recognising the plight of Welsh dairy farmers by taking action to secure the future of the dairy industry in Wales.

"The quality of Welsh Milk is amongst the best in the world, yet its producers are not receiving the payments they deserve. It is time for a revolution for dairy farming in Wales that will ensure a prosperous and sustainable future for this industry, upon which so many Welsh farmers rely.

"For many years I have campaigned for a 'Fair Deal' brand for Welsh milk, to ensure fair play for our local producers and help to develop sustainable Welsh markets for the future. I have recently written to Prince Charles, to ask for his support for the establishment of a 'Fair Deal' brand of Welsh milk, a brand that will help promote a healthy Welsh product and ensure a fair and honest deal for the public and farming industry."

Notes:

WRITTEN STATEMENT BY THE

WELSH ASSEMBLY GOVERNMENT

Title: Single Payment Advance for Dairy Producers hit by collapse of Dairy Farmers of Britain

Date: 6 July 2009

By: Elin Jones, the Minister for Rural Affairs

The demise of Dairy Farmers of Britain (DFoB) dealt a financial blow to some 281 dairy producers in Wales who were supplying the company. These producers have not been paid for milk supplied in May and early June, and they will have also lost the significant financial investment they made in the co-operative.

The Welsh Assembly Government has no power to intervene in matters relating to the operation of the milk market. On the other hand, we have some flexibility within the EU rules that allow an advance to be made on the 2009 CAP Single Payment. I have decided to exercise that flexibility, given the specific circumstances, to those milk suppliers in Wales directly affected by the DFoB situation.

I have agreed that dairy producers in Wales who did not receive re-imbursement in May for milk supplied to the former DFoB and who meet the conditions of the Single Payment Scheme will receive, from 16 October, an advance on their CAP Single Payment that would ordinarily be paid from December.

The Single Payment advance will be 70% of the full 2009 payment due. The full Single Payment Scheme conditions must be met and payments can only be made once all validation checks have been successfully completed.

I have made clear to the farming unions that the advance to the Welsh DFoB suppliers is an exceptional measure. I have also given my assurance that taking this action will not compromise full payment to other producers. We will not detract from the track record in Wales of the full Single Payment being released to some 90 per cent of recipients by the end of year.

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