£65,000 government support for Bute dairy farmers

Dairy farmers on Bute will be hit with a further price cut of 1.2 pence per litre from June 1.
Dairy farmers on Bute will be hit with a further price cut of 1.2 pence per litre from June 1.

Scotland’s rural affairs secretary has confirmed the provision of urgently-needed financial help for Bute’s under-pressure dairy farmers.

Mr Lochhead announced on Wednesday that around £65,000 would be provided for the next six months to cover the cost of tankers returning empty on ferries to Bute from the mainland.

The move follows concerns about the decision by First Milk to further reduce the price of milk paid to farmers on Bute, the impact on the local economy and the sustainability of the industry on the island.

“We have been doing everything we can to help our dairy farmers through the recent deductions in milk prices globally,” Mr Lochhead said.

“However, the recent announcement from First Milk that they will pay farmers on Bute a lower price for their milk is concerning and clearly highlights the extra challenges the dairy sector faces on this island.

“We recognise the significant additional burden being faced by dairy farmers on Bute. I look forward to hearing from First Milk about their plans to ensure a sustainable future for these farmers and am pleased the Scottish Government is able to provide some short-term funding in the meantime.

“We are committed to working with the dairy sector in these volatile times, and have separately agreed to provide funding of £400,000 to Campbeltown Creamery, which is expected to be made shortly.

“The Scottish Government has already set up the Dairy Growth Board and published the Dairy Action Plan to help increase exports and this work will take a significant step forward with the first glimpse of the Scottish Dairy Brand expected at the Royal Highland Show next month.”