The scheme, which is voluntary, pays 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 October 2016 to 31 December 2016
- 1 November 2016 to 31 January 2017
- 1 December 2016 to 28 February 2017
- 1 January 2017 to 31 March 2017
The payment will be £12.23 per 100 litres for the amount of cows’ milk eligible for payment.
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. The first application period ended 21 September 2016 so you will need to check on availability before making an application.
Direct sales and milk from species other than cows are not part of the scheme.
How to apply
Apply to join the scheme as soon as possible. More details https://www.gov.uk/guidance/milk-production-reduction-scheme-how-to-apply