Big farmers need big subsidies says British farmers' union

LONDON - British dairy produce firm Meadow Foods received about £26 million pounds, ($67.7 million) in EU farm subsidies in 2004, while the UK arm of Swiss food conglomerate Nestle was handed more than £12 million pounds ($31 million) through British channels.

Data published today on Europe's farm subsidy scheme in 2004, was the first time Britons had been shown details of EU farming policy payments that eat up nearly half of the bloc's annual 100 billion euros ($182.8 billion) budget.

The EU is in the midst of reforming the huge Common Agricultural Policy (CAP), which critics say distorts trade and stops farmers from poor states from competing on world markets.

Nestle said it could manage without the funds if the EU farming regime did not penalise against importing cheaper foreign sugar and milk.

Almost three-quarters of the total payout documented in Britain went to English farmers in production incentives. The rest went to farming and food companies like Nestle to help them compete in the global market.

But while some farmers received less than a pound from the funds, larger farmers received more than a million each.

The National Farmers' Union (NFU) said big farmers needed big subsidies.

"We will see the large farm structures take a lot of money but then the large businesses produce most of the food in this country," NFU president Tim Bennett said.

But charity campaigner OXFAM -- which called for the information to be published -- said the subsidy system unfairly favoured powerful farmers.

"East Anglian grain barons and the landed gentry enjoy a bumper cash harvest while small British farmers struggle to get by," OXFAM spokesman Phil Bloomer said.

British sugar giant Tate & Lyle received almost five times as much money as any other company

Tate & Lyle received by far the highest amount for a single company with more than £ 127 million pounds ($330.8 million) which it said was used to purchase sugar from African, Caribbean and Pacific (ACP) producers at prices above global market levels.

"We are a really important bridge into the valuable European market for the ACP countries. This shows how valuable that bridge is," Tate & Lyle spokesman Chris Fox said.

Total payments to the farming and food industry through British channels cost taxpayers almost 2.4 billion pounds ($4.56 billion) between October 2003 and October 2004, data released by the government under new freedom of information laws showed.

The figures only relate to cash paid out through British agencies.

The Rural Payments Agency (RPA), which released the data, said they should be interpreted with care: "The payment data alone will not give a full picture of the support which individuals or businesses may receive from the common agricultural policy. "

- REUTERS