News 261 views update:Jun 23, 2006

European Commission funds measures to support poultry market

An EC proposal for EU budget co-financing of measures to support the AI stricken poultry market has been approved. The expected cost to the EU budget is between €50 and €65 million.

The following member states have requested aid measures: Czech Republic, Germany, Greece, Spain, France, Ireland, Italy, Cyprus, Hungary, the Netherlands, Austria, Poland, Portugal, and Slovakia.

The proposal specifies the type of measures which can be 50 percent financed by the EU. It focuses on 'upstream' measures, that is, those that aim to temporarily reduce production, such as the destruction of hatching eggs. It sets a maximum level of compensation per unit destroyed as well as the maximum number of units per member state and the time period covered by each measure.

The Commission does not propose co-financing of 'downstream' measures such as aid for private storage or the destruction of existing stocks of poultry meat.

"The dramatic decline in poultry consumption and prices earlier this year was an extraordinary situation which required extraordinary measures," commented Mariann Fischer Boel, Commissioner for Agriculture and Rural Development. "I believe our proposals will give farmers the flexibility to adjust their production to the market situation without prolonging market imbalances unnecessarily. I am against aid for private storage and the destruction of stocks of meat. Thanks to the recent improvement in the market situation, the industry should be able to use existing stocks."

Editor WorldPoultry

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