OTMS cut could mean over-quota production

By FWi staff

A FURTHER cut in the compensation paid for cattle entering the over thirty months scheme has done little to help dairy producers.

Many farmers were expected to bring forward culls to stem milk output and avoid going over quota.

But the revaluation of OTMS compensation – calculated from the average £: exchange rate each month – has done little to encourage dairymen to make the decision.

The current compensation for dairy cattle is now £270/head, down £8 a head after last months recalcuation of the Euro 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 30 January, 24,000 cattle entered the scheme, bringing this years total to 95,400 cattle.