EC proposes financial aid for poultry sector

30/03/2006

The European Commission has tabled a proposal to allow the European Union budget to share the cost of market support measures in the eggs and poultry sector. According to an EC statement, since the beginning of the recent avian flu crisis, consumption of poultry and eggs has fallen dramatically in some Member States, leading to a sharp reduction in prices. The current regulations governing the eggs and poultry market allow the EU to co-finance compensation measures only in cases where there is a case of avian flu on a farm or where farmers are prevented from moving their poultry because of restrictions imposed on veterinary orders.

Because of the gravity of the current crisis, the Commission now proposes to co-finance 50% of the cost of market support measures linked to a drop in consumption and prices of eggs and poultry. The proposal will be sent to the European Parliament and the Council, hopefully for adoption by the end of April. Once the legal base has been adopted, Member States will have to submit their proposed measures for Commission approval.