July 24, 2008

England's dairy industry will soon be paying out an additional GBP 600 million (US$1.2 billion) over the next 10 years due to the government's Nitrates Vulnerable Zones Action Programme, according to a research conducted by Dairy UK.

The controversial programme will forbid dairy farmers from spreading organic manure for three to four months of the year and will oblige them to have slurry storage capacity equivalent to five months' output. The programme will also increase Nitrate Vulnerable Zones from 55 percent to 70 percent.

The dairy sector is unable to afford this extra cost as production costs have skyrocketed in the past one year, Dairy UK director general Jim Begg said.

Environment Minister Phil Woolas said help is provided to farmers through tax allowances on capital costs. However, the government will not be offering grants for new slurry stores, a decision that has not sat well with some critics.

Greg Bliss, chairman of the Tenant Farmers Association said it is unfair to ask English dairy farmers to pay an average of GBP 50,000 (US$100,000) for new slurry stores when other parts of the UK have offered grant assistance to their livestock producers.