asked the Minister for Agriculture the estimated extra cost per gallon of milk to dairy farmers following: (a) the extended delay in intervention payments for dairy products, and (b) the reduction from 100 per cent to 75 per cent of recoupable costs of intervention storage, transport etc.
Written Answers. - Milk Payments.
167.
In terms of milk used for intervention butter, which is the only product affected, the delay in payment this year compared to the situation which existed for most of 1985-86 represents a cost of over 4p per gallon. In the period from February until the end of the year on 11 May and an extended payment and storage delay period operated and compared to that situation the new arrangement represents a gain of 8p per gallon for the dairy industry.
The reduction of 25 per cent in the recoupable intervention costs will not affect the dairy farmer's return.