2024 Author: Jasmine Walkman | [email protected]. Last modified: 2023-12-16 08:29
There is a chance native dairy farmers to receive direct subsidies. A decision on this can be taken by the European Commission in the next ten days, informs EconomikBg.
The support measures that the commission will consider will be targeted at the dairy sectors in the Baltic republics, Bulgaria and Romania, which have been hit hard by the Russian embargo on European goods.
Despite Agriculture Commissioner Phil Hogan's unequivocal stance against direct interference in market pricing and direct financial aid for farmers, this is likely to happen because a number of EU governments are pushing for it.
Bulgaria is among the countries most indirectly affected by the Russian embargo, although our country is not a major exporter of dairy products to Russia.
The domestic dairy industry has suffered after other major exporters of milk affected by the embargo began importing it to Bulgaria.
This led to an immediate reduction in raw material purchase prices and dealt a severe blow to a number of local producers.
Whether there will be targeted aid for dairy farmers will be clear on 7 September, when an extraordinary meeting of the Council of Agriculture Ministers of the 28 Member States will take place.
Brussels strongly opposes the payment of additional subsidies to farmers, who even now receive nearly € 56 billion a year in production subsidies.
Commissioner Hogan is adamant that he would not make new proposals to encourage government intervention instead of forcing producers to look for new markets for their products.
The commissioner believes that the excessively low purchase price of milk is due to a complex of factors, including its overproduction worldwide, weak demand for milk in China, the Greek financial crisis and others.
According to the Ministry of Economy, the Bulgarian losses from the Russian embargo are estimated at 82 million euros, of which 44 million euros are the losses realized in the dairy sector.
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