Dairy Products: Coronavirus

(asked on 21st April 2020) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask Her Majesty's Government what steps they are taking to assist farmers and processors to find alternative outlets for milk and other dairy products that would otherwise go to waste due to disrupted supply chains as a result of the COVID-19 pandemic.


This question was answered on 5th May 2020

Defra is working very closely with both farmer and processor representatives through this period of disruption to manage the impact on the dairy supply chain of Covid-19. Farmers supplying milk to processors that sell into the food service sector have seen a significant reduction in demand and we have taken several steps to support those affected.

This includes by temporarily setting aside some elements of competition law to enable farmers and the wider dairy sector to work together to minimise milk being wasted and to ensure it is processed into longer life dairy products. This approach will allow the market for milk to adjust to the change in demand for milk while allowing production to be restored when shops, restaurants and pubs are able to open again.

The Government's Covid-19 Business Interruption Loans scheme is available to the dairy industry to support them in this difficult period. I urge those farm businesses for whom it is appropriate to consider accessing these loans. Defra has held urgent discussions with the major banks to ensure they understand that farmers, milk buyers and milk processors are eligible for this scheme and we are working to increase awareness across the dairy industry. HMT have also now announced the new Bounce Back Loan scheme which will apply to businesses operating in agriculture. This will ensure that the smallest businesses can access up to £50,000 loans. The government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. We will also cover the first 12 months of interest payments and fees charged to the business by the lender.

The Government also took a number of early emergency steps to support dairy farmers and the wider sector. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers' hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors.

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