EU divides €300m emergency dairy aid package

By Guy Montague-Jones

- Last updated on GMT

Related tags: Member states, European union

EU member states have reached an agreement on the distribution of the proposed €300m aid package for dairy farmers.

Yesterday member states voted in favour of the Commission proposal to provide farmers, struggling to cope with low milk producer prices, with financial aid.

The money will have to be given to individual farmers who are severely affected by the low dairy prices, and are now encountering liquidity problems. The money is to be divided between member states as follows.

Aid allocation

Belgium, €7.21m, Bulgaria €1.84m, Czech Republic €5.79m, Denmark €9.86m, Germany €61.20m, Estonia €1.30m, Ireland €11.50m, Greece €1.58m, Spain €12.79m, France €51.13m, Italy €23.03m, Cyprus €0.32m, Latvia €1.45m, Lithuania €3.10m, Luxembourg €0.60m, Hungry €3.57m, Malta €0.08m, Netherlands €24.59m, Austria €6.05m, Poland €20.21m, Portugal €4.08m, Romania €5.01m, Slovenia €1.14m, Slovakia, €2.03m, Finland €4.83m, Sweden €6.43m, UK €29.26m.

Receiving €51.13m and €61.20m respectively, France and Germany are the biggest recipients. The two major dairy producers were instrumental in pushing for the emergency EU dairy fund.

Payment deadline

The money will be distributed according to production within quota in the 2008/09 milk production season (April 2008-March 2009). The money has to be paid before the end of June 2010.

EU agriculture commissioner Mariann Fischer Boel first announced the aid package back in October following months of protests and lobbying from dairy farmers. The exceptional measure was designed to ease the financial struggles of the worst affected EU farmers. The aid will be drawn from the bloc’s 2010 budget.

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