Commission proposes financial aid to poultry industry

Due to the current avian flu crisis, the Commission is set to co-finance 50% of the member states’ market support measures in the eggs and poultry sector hit by falling consumer confidence.

Currently, the EU legislation provides for 50% co-financing, from the EU budget of veterinary measures, such as slaughtering of chickens, and of compensation for animal movement restrictions due to an outbreak on a farm. However, it does not provide for EU market support aid due to problems linked to a fall in sales caused by a loss of consumer confidence. 

A Commission proposal tabled on 29 March 2006 suggests to change the current rules to allow for co-financing of individual member states’ exceptional market support measures to help eggs and poultry farmers hit by bird flu. 

“This unprecedented situation can no longer be dealt with using the existing tools,” said Commissioner for Agriculture and Rural Development Mariann Fischer Boel.

The proposal, that could be adopted by the Parliament and the Council by the end of April 2005, would allow for 50% co-financing, from the EU budget, of the cost of market support measures linked to a drop in consumption and prices of eggs and poultry.

According to the proposal, individual member states would decide on the appropriate measures to be co-financed and would notify them to the Commission. The Commission would then check whether the proposed measures are compatible and justified with the prevailing market situation and, ultimately, give green light for the co-financing.

So far, France and Italy have indicated serious fall in poultry sales due to declining consumer confidence.

Read more with Euractiv

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