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Dairy Farmers of Britain

Volume 495: debated on Monday 6 July 2009

To ask the Secretary of State for Environment, Food and Rural Affairs if he will make (a) an estimate of the cost and (b) an assessment of compatibility with EU state-aid rules of provision of compensation to members of the Dairy Farmers of Britain co-operative for the loss of payments for milk supplied to the co-operative in May 2009. (283216)

In response:

(a) The Receivers (PwC) have estimated that the total financial costs to farmers who were members and former members of Dairy Farmers of Britain on 3 June are around £83 million.

(b) The proportion of this figure which arises from the failure to pay the May milk cheques is a matter for the Receiver.

Government have considered whether we can compensate farmers, but do not plan to do so.