Written - Single Payment Advance for Dairy Producers hit by collapse of Dairy Farmers of Britain

The demise of Dairy Farmers of Britain (DFoB) dealt a financial blow to some 281 dairy producers in Wales who were supplying the company. These producers have not been paid for milk supplied in May and early June, and they will have also lost the significant financial investment they made in the co-operative.

The Welsh Assembly Government has no power to intervene in matters relating to the operation of the milk market. On the other hand, we have some flexibility within the EU rules that allow an advance to be made on the 2009 CAP Single Payment. I have decided to exercise that flexibility, given the specific circumstances, to those milk suppliers in Wales directly affected by the DFoB situation.

I have agreed that dairy producers in Wales who did not receive re-imbursement in May for milk supplied to the former DFoB and who meet the conditions of the Single Payment Scheme will receive, from 16 October, an advance on their CAP Single Payment that would ordinarily be paid from December.

The Single Payment advance will be 70% of the full 2009 payment due.  The full Single Payment Scheme conditions must be met and payments can only be made once all validation checks have been successfully completed.

I have made clear to the farming unions that the advance to the Welsh DFoB suppliers is an exceptional measure. I have also given my assurance that taking this action will not compromise full payment to other producers. We will not detract from the track record in Wales of the full Single Payment being released to some 90 per cent of recipients by the end of year.