11 February 2000

Little impetus to cull cattle

A FURTHER cut in the compensation paid for cattle entering the over thirty months scheme has done little to help dairy producers, despite the fall in milk production figures.

Aggressive cuts in milk output were expected to contribute to a potential rise in the number of cull cows being put forward for the scheme, say traders. But the revaluation of OTMS compensation – calculated from the average £:l exchange rate each month – has done little to encourage culling.

The current compensation for dairy cattle is now £270/head, down £8 a head after last months recalculation of the &#8226 to £0.60. Compensation rates are now 48.4p/kg liveweight for cows and 54.4p/kg for other cattle (bulls are now worth a maximum of £304).

Latest Intervention Board figures suggest for the week ending Jan 30 24,000 cattle entered the scheme bringing the years total to 95,400. &#42