Europe to support poultry farmers hit by bird flu
The European Union is set today to approve special funding for poultry farmers who are suffering from falling prices and demand as the spread of bird flu scares consumers away from chicken, turkey and other fowl.
Some 320,000 tons of unmarketable poultry meat are in cold storage across the 25-nation EU.
On average, prices have fallen by 13% but the situation varies from one EU member state to another, EU spokesman Michael Mann said on the eve of a meeting of EU agriculture ministers. “There is a crisis of (consumer) confidence,” he said.
Consumption is down by 5% in Denmark and Finland but by as much as 40% in Cyprus, 50% in Italy and 70% in Greece, according to EU data.
The agriculture ministers are expected to allow governments to provide relief funding for poultry farmers hit by the bird flu scare, with the EU paying half of those subsidies.
Mann said the European Commission would not pay subsidies retroactively, and that the EU would contribute only half of national payments for poultry farmers.
Sources said the extent of EU participation remained under debate and that some countries want the EU to pay all of the costs.
The European Parliament has already signalled its approval of the measure, meaning it can take effect before the summer, officials said.
The European Commission calls the poultry market situation ”unprecedented”, justifying a change in rules that now prevent the EU from providing subsidies designed to prop up consumption and prices.
It prefers subsidies that pay farmers for not producing poultry or eggs – and thus cut production – rather than paying them for storing surplus poultry. Lowering production would prop up prices.
“We’ll look at national measures that will be proposed and see what we can endorse. Some nations may want to spend money to encourage people to eat more poultry,” Mann said.
EU officials were unable to estimate how much money would be required from the EU budget.
World-wide, at least 113 people have died of bird flu. Though most contracted it after close contract with birds, scientists are concerned that H5N1 could mutate into a virus that is easily transmitted between people and cause a pandemic.
Germany, which has 70,000 tons of poultry products in storage, estimates its sector has suffered damage of around 150 million euros due to falling demand and the cost of culling birds.
In France – which has surplus stocks of 40,000 tons – the poultry sector estimates it loses $40m a month.
Bird flu has spread from Asia to Europe, in wild birds. The EU has order commercial stocks to stay inside or approved inoculation programs. The first infection of commercial stocks was found on a French turkey farm last month.
Some 45 countries have issued full or partial bans on poultry imports from France, depressing Europe’s largest poultry producer.
