Europe’s dairy farmers handed €300m boost

An emergency dairy fund to help struggling dairy farmers across Europe has been extended by €300m (£249m).

The European Parliament’s Agriculture Committee agreed to extend existing funding so it could continue to help the EU’s dairy sector market and restructure the industry.

About €280m (£232m) was previously set aside by the European Union in 2009 to assist beleaguered dairy farmers.

The fund will also provide financial assistance for deprived areas and fund research into developing dairy products.

At a meeting on Tuesday (31 August), the Committee also voted for an increase in the EU school milk budget from €80m to €90m (£66.4m to £74.7m).

It also agreed to continue funding the EU Farm Prices and Margins Observatory, which compiles data on the difference between what producers receive for produce and the amount consumers pay.

Scottish National Party MEP Alyn Smith, a member of the committee, said the fund remained a “useful tool” for dairy farmers, but warned changes to the structure of the dairy industry were needed for a longer-term solution.

“It is a silver lining to what remains a big storm cloud [for the dairy industry],” he said.

“If farmers are not making money from the market then there is no amount of other mechanisms that will encourage folk to stay in farming.

“The net effect of exporting our food production is potentially catastrophic.”