7. 6 | | BUSINESS Business & Media |
21.05.06
CASH COWS
WHAT IT COSTS THE TAXPAYER TO DESTABILISE DAIRY MARKETS
British export subsidies, by Export subsidy granted, by company, 2004 and 2005
destination country, 2004 and 2005
Fayrefield
Foods* £22,149,818
Philpot Dairy
Products £21,957,002
SAUDI Dale
ARABIA Farm* £19,391,504
£2,147,003
INDIA
£1,244,914 Nestle
UK £7,442,672
JA N
APAN
UAE BANGLADESH £ 44,2
£1,24 273
ALGERIA £6,016,605 £3,479,499
£9,413,948
TMC Dairies
EGYP
YPT (NI) £6,421,069
MEXICO £3,03 340
,031,340
£7,714,200
PH IPPINE
PHILIP NES
JAMAICA
JA AICA £1,7 ,901
,708,9
£2,296,9 7
£2 296,987 OMA
OMAN Hoogwegt
£4,660,97
,660,973 International £6,016,872
SUDAN THAILA D
HAILAND
IVORY COAST
IVO £3,906,970 £6 06,805
£6,706,80
VENEZUELA £5,722,515
722,515 Lakeland Dairies
£2,274,752 (NI) £4,863,754
NIGERIA
£11,782,308 IND
INDONESIA
ESIA
£2,94 8
£2,947,118
Eilers & Wheeler
Sales £4,009,257
Meadow
Foods £3,335,750
KEY F Uhrenholt
Dairy £3,084,188
*includes subsidiaries
£1 to £4m £4 to £7m £7m+
£0m 5 10 15 20
GRAPHIC: CATH LEVETT PHOTOGRAPH: ALAMY SOURCE: FARMSUBSIDY.COM
Who’s creaming off EU subsidies?
Exports of cheap European dairy products are crushing the livelihoods of developing world farmers, writes Heather Stewart
B
ritish-based exporters, including known as the EU ‘butter mountain’ cow is one of the most reliable ways of on behalf of the EU, said Britain would
Nestle and Dairy Crest, have (‘wine lakes’ were another manifestation Peter Mandelson lifting yourself out of poverty,’ says like to see them abolished.
claimed £126m of taxpayers’ of the same problem). But after a barrage agreed to Europe Thurston, who is trying to compile a ‘We would prefer that export refunds
money over the past two years for of criticism of this very visible waste, giving up export Europe-wide directory of how Cap disappeared as soon as possible; but as
sending surplus butter and milk powder to Brussels switched its attention – and its subsidies by subsidies are spent. long as they are there, British farmers are
poor countries such as Nigeria and cash – towards exporting the products. 2013. Critics say Sheila Page of the Overseas Develop- entitled to claim them just like all EU
Bangladesh, according to a new report Since the EU price is so much higher this is no help to ment Institute says small-scale farmers farmers,’ he said. He added that the gap
obtained exclusively by The Observer. than the world average, farmers are farmers driven in Bangladesh or Indonesia would prob- between the fixed EU price and the
Export support for British dairy prod- given a refund for each kilogram of but- out of business. ably not be the beneficiaries if the subsi- world price had narrowed in recent
ucts is only a tiny part of the complex ter or skimmed-milk powder they dies were removed; but more efficient years, and argued that the amount spent
€43bn web of farm subsidies that export, so that they can sell at something exporters, such as Argentina and Aus- on export refunds had been ‘withering
stretches across the European Union. closer to the market price and avoid major destinations for exports are sur- tralia, could win such markets in fair away’.
But by anatomising this one subsidy in making a huge loss on the transaction. prising. British firms were handed (unsubsidised) competition. Britain’s small-scale dairy farmers,
detail, the figures provide a startling pic- This year the subsidies are €109 (£73) for £11.8m over the two-year period for ‘If they weren’t getting it from the EU, many of whom have been driven out of
ture of how the Common Agricultural every 100kg of butter exported. sending milk products to Nigeria, for they would be getting it from some- business recently, see little of the benefits
8.
9.
10.
11.
12. Poland: Top 10 recipients, 2006 & 2007
Recipient name Location Amount €
Spółdzielcza Agrofirma Witkowo Witkowo Pierwsze 4 255 935
Top Farms Głubczyce Spółka Z.O.O Głubczyce 4 064 372
Top Farms Wielkopolska Sp. Z O. O. Piotrowo Pierwsze 3 991 238
Kombinat Rolny Kietrz Sp.Zo.O. Kietrz 3 814 261
Poldanor S.A. Przechlewo 3 798 350
Kom-Rol Kobylniki Spółka Z O.O. Kobylniki 2 221 563
Agro - Skandawa Spółka Z Ograniczoną Aptynty
Odpowiedzialnością Agro - Skandawa 2 084 845
Sp. Z O.O. Z O.O.
Rolnyvik Sp. Barciany 1 922 988
Polska Hodowla I Obrót Zwierzętami Szymankowo
Sp. Z O.O. Szymankowo 1 808 175
Agri Plus Spółka Akcyjna Konarzewo 1 558 059
13. 17 per cent of
recipients get 85
per cent of the
money
14. Why?
“For whosoever hath, to him
shall be given, and he shall have
abundance: but whosoever hath
not, from him shall be taken
away even that which he hath.”
Matthew 13:12
31. “a visual encyclopedia that
documents the manufacturing
processes, labor conditions
and environmental impacts
involved in the production of
contemporary products”