With some dairy farmers facing financial difficulties and excess milk, the new fund will provide support for those most in need. The funding will allow farmers to cover 70% of their lost income during April and May, to ensure they can continue to operate and sustain production capacity without impacts on animal welfare.
It also comes as the government today backed a £1 million campaign to boost milk consumption and help producers use their surplus stock.
The campaign will to help increase sales of dairy products by encouraging the public to drink more milk.
The dairy sector
The dairy sector is the UK’s largest farming sector, with milk accounting for 16.85% of total agricultural output in the UK in 2018. Since the start of the coronavirus outbreak, the dairy industry has faced challenges of excess milk, falling prices, and reduced demand from the hospitality sector.
While many farmers have already rerouted their milk supplies to retailers and supermarkets – which have seen increased demand in recent weeks – today’s move will give the farmers in the greatest need the financial assurance to ensure they can remain operational, sustain production capacity and continue to meet animal welfare demands at this time.
Eligible dairy farmers who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible to access this funding for those qualifying months, with no cap set on the number of farmers who can receive this support or on the total funding available.