British dairy companies urged to join in debate on CAP reform

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Dairy companies are being urged to share their views on a new analysis by Dairy UK of how Common Agricultural Policy reform will affect British dairy.

The document, published this week, sets out the threats and opportunities presented by the European Commission’s proposals for the CAP.

It warns that suggestions to ‘cap’ payments to farmers could act as a “brake on industry restructuring”, and argues the EC’s proposals for ‘greening’ the CAP - making some payments conditional on environmentally friendly farming practices - need amendments to be workable. Dairy UK also said it was vital the CAP fostered competitiveness in the industry.

“We are now at the business end of the current round of proposals and, in summary, they are a mixed bag for our industry,” said Dairy UK director-general Jim Begg. “We hope that this document acts as a catalyst for feedback and debate.”

Efforts to reform the CAP were dealt a blow last week, when European leaders failed to agree on a new EU budget.

The CAP accounts for about 40% of total EU expenditure.

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