Dairy farming leaders in Pembrokeshire have united in calling on the Welsh Assembly to act swiftly in allocating compensation due from an EU emergency fund to the county’s milk producers – but they disagree on how that money should be shared.

The chairmen of both the NFU Cymru and FUW dairy committees were reacting to news that Wales’ rural affairs minister, Elin Jones, had launched a consultation on how the £3.5million earmarked for Wales from the UK’s £29million share of the EU Dairy Fund should be distributed.

NFU Cymru Milk Board chairman and Pembrokeshire milk producer, Mansel Raymond, wants to see 0.2ppl paid across the board for every litre of milk produced during the 12-month period from October 1st, 2008, to September 30th, 2009.

“Everyone has suffered and therefore everyone is entitled to the same payment for milk produced,” he said.

However, Eifion Huws of the FUW favours the second option of a payment of 0.5ppl on the first 100,000 litres of production, plus an estimated payment of 0.15ppl on production over 100,000 litres for milk produced this period.

This would favour smaller farmers in Wales whom, he says, have been greatest hit by turmoil in the cheese markets.

“Seventy-eight per cent of Welsh milk goes into cheese production. While other markets are recovering, we are all aware of the dire straights that the cheese industry is in,” he said.

But what Mr Huws and Mr Raymond do agree on is that delays in allocating funding already agreed by Europe are impacting on farmers’ cashflows. “This money was made available last October, but farmers have yet to see a penny of it,” said Mr Raymond.

The Assembly’s minister for rural affairs, Elin Jones, has set a February 17th deadline for the consultation period, but Mr Raymond says this will create unnecessary delay in getting the money to farmers. The Assembly is issuing the consultation to producer representatives, but a copy of the consultation document will be placed on its website for additional comment. Further information is available from the CAP Reform branch by calling 029 2082 6102 or e-mailing capreform@wales.gsi.gov.uk.