Rural Payments and Services

The European Commission revealed details of the Milk Production Reduction Scheme in July, which is an incentive to dairy producers across the European Union.

The scheme – which is voluntary – provides money to milk producers who reduce the amount of cows’ milk they deliver to first purchasers during a 3-month period, known as the ‘reduction period’. This is compared with the same 3-month period in the previous calendar year, known as the ‘reference period’.

There may be up to 4 reduction periods:

1. 1 October to 31 December 2016
2. 1 November 2016 to 31 January 2017
3. 1 December 2016 to 28 February 2017
4. 1 January to 31 March 2017

Applicants can apply for the scheme from today (11 September). The application deadline for the first ‘reduction period’ is 11 am on Wednesday, 21 September.

If the scheme is over-subscribed in one or more reference periods, the volume of cows’ milk eligible for payment will be reduced. If one of the reduction periods is full or oversubscribed, the remaining reduction periods will be cancelled. If this happens, all applications for the remaining reduction periods will be rejected.

Direct sales and milk from species other than cows are not part of the scheme.

Applications are done through the Rural Payments Agency (RPA).

If any Dairy producers would like more information please click on this link - https://www.gov.uk/guidance/milk-production-reduction-scheme-how-to-apply#how-and-when-to-apply