Scottish dairy farmers are to receive a one-off payment of £2,500 each before Christmas to help with cash-flow problems caused by volatile prices.

They are to receive a share of the UK’s £26.2 million overall direct aid package from Europe after fluctuating prices in the dairy industry and it is expected that the money will be in farmers’ bank accounts in December.

The National Farmers Union Scotland (NFUS) said the payment would be welcome for those most in need but it did not resolve the long term challenges.

Scott Walker, NFU Scotland chief executive, said: "While we favoured the money being targeted to those Scottish dairy producers most in need, it was essential that this package was delivered in a way that did not impact on the bigger picture of getting new CAP support payments out to all Scottish farm businesses.

“A number of options were considered on how the money should be spent but given the potential risk to delaying other payments or the length of time it would have taken, we can understand why the Government has chosen the simplest and quickest method of distribution."

He added: "This will be welcomed by those Scottish dairy farmers most in need.

“It is important to remember that the sum of money being paid to individual producers - at an average of £2,500 per business - is relatively small in relation to the losses being experienced on some Scottish dairy farms and that a better milk price is the only way to secure the long term future for those who are milking cows.”

Earlier this year Scottish farmers protested over the reduction in UK milk prices caused by a global glut of dairy products.

Dairy farmers held demonstrations in stores in Ayr and Kilmarnock when they bought up milk and gave it free to customers and local charities.

Bryce Cunningham, a farmer and campaigner from Mauchline in Ayrshire, is among those who have been calling for farmers to be paid a fair price for milk in the longer term.

The Scottish payment system is in line payments in England, the Department for Environment, Food and Rural Affairs (Defra).

Defra said it wanted to adopt a standard method of payment and ensure aid reaches farmers before Christmas.

Farmers south of the Border will receive around £1,800.

Scotland's dairy farmers will receive more because of the larger size of farms.

UK Farming Minister George Eustice said: “We recognise that many dairy farmers in the UK are suffering financially at the moment and the support will offer some relief.

"In Scotland, because they have larger dairy units on average, it will be just over £2,500."

The UK’s overall direct support package is the third largest of all the member states.

Scotland will receive £2.3m and Wales £3.2m, while in England dairy farmers will share £15.5m in recognition of the "prolonged period of low prices".

Northern Ireland was given a boosted allocation - worth £5.1m - in recognition of some of the lowest prices across Europe there last year.

Farmers estimate that it costs between 30p and 32p to produce a litre of milk but the average price paid across the UK is 23.66p, following a drop of 25 per cent in a year.

Payments across the UK will vary per farmer and be based on a flat rate per litre of milk production in 2014-15.