€11.5 million in payments under Dairy Compensation Fund issued

PAYMENTS under the Dairy Compensation Fund began yesterday, Agriculture Minister Brendan Smith announced.

He said the payments, worth €11.5 million, are issuing speedily, given the difficulties experienced by dairy farmers over the past year.

“While member states are to make the payments by the end of June 2010, I was determined that they should issue as soon as possible,” he said.

Mr Smith said this fund is part of a package of measures agreed at the Council of Agriculture and Fisheries Ministers to support dairy farmers across the EU who were severely affected by the fall in milk prices.

Having consulted with the various stakeholders in the dairy sector, he said he had decided to allocate the money on a flat rate basis. “This enabled my department to make the payments at the earliest possible time without the need for farmers to submit applications for payment.”

Each member state’s share of the EU funds was established using their milk production in 2008/2009, and on this basis, Ireland received €11.5 million. The rate payable is €590 to each dairy farmer, who produced milk during the 2008/2009 milk quota year.

Meanwhile, the ICMSA has called on Mr Smith to ensure that Rural Environment Protection Scheme (REPS) payments are issued without delay. Deputy president John Comer said many farmers who have received their 75% payment are still awaiting the 25% balance.

“Farmer anxiety is growing daily with many under severe financial pressure due to a significant lack of cash flow on many farms.”

The Irish Co-operative Organisation Society (ICOS) has also welcomed the news that Glanbia Co-op and Glanbia Plc are in discussions over the sale of the Plc’s Irish interests to the co-op.

ICOS president Pat McLoughlin, said it would give farmers greater control over the production, pricing and processing of their milk.

The transfer of ownership of the Irish interests of Glanbia plc, including dairy ingredients, consumer products and agri-business, to the co-op would also provide an important boost to the discussions on the reorganisation of the Irish co-op sector, he said.