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Written Ministerial Statement from David Miliband on the Livestock Sector and Allocation of Axis 1 Voluntary Modulation Money - 26 June 2007

The Secretary of State for Environment, Food and Rural Affairs (Mr David Miliband)

1. In my Written Parliamentary Statement of 29 March 2007 on voluntary modulation (VM) and the new Rural Development Programme for England, I  said that I would make a further announcement about the use of VM receipts under Axis 1 to assist the livestock industry in tackling some of the particular challenges it faces. 

Purpose of Axis 1 livestock-related measures

2. Voluntary modulation receipts amounting to £98 million at current exchange rates over the lifetime of the new programme will be used to support three main objectives:

  • to bring about improvements in the competitiveness of each individual livestock sector to help them compete in the marketplace;
  • to assist farmers in meeting their changing responsibilities and facilitate improved animal health and welfare;
  • to provide support for farmers in enhancing the efficiency and effectiveness of on-farm management of nutrients. 

3. All the main livestock sectors (dairy, beef, sheep, pigs, poultrymeat and eggs) will be eligible for this extra funding.

Formula for the division of Axis 1 VM funding

4. The livestock package of funding will be delivered by the Regional Development Agencies (RDAs) alongside the core funding for Axis 1.  The RDAs will work with a number of delivery partners in their management of the Axis 1 VM funding, including the Levy Boards.

5.The VM resources will be divided between the eight RDAs responsible according to a new specific formula based on numbers of livestock (using standard livestock units or LSUs), but with a weighting towards the density of dairy cattle because of the particular burdens that nutrient management issues will cause for the dairy industry.  This results in a distribution between the regions as follows
 

 

Weighted distribution

 Approximate
Allocation
£m

North East

6.3%

1.02

North West & Merseyside

17.1%

2.79

Yorkshire and the Humber

12.0%

1.95

East Midlands

11.4%

1.86

West Midlands

15.2%

2.48

Eastern

7.0%

1.14

South East & London

8.0%

1.30

South West excl Cornwall1

23.1%

3.77

England (without Cornwall)

100.00%

16.30

1Separate funding arrangements will apply in Cornwall and the Isles of Scilly through the Convergence element of the Rural Development Programme for England
 
Next Steps

6. The RDAs have initiated detailed discussions with the principal livestock industry stakeholders in their regions with a view to putting together a detailed programme of options to meet the three objectives described above, and taking account of particular regional priorities. 

 

Page published: 26 June 2007

Department for Environment, Food and Rural Affairs