April 2, 2008

Cheese ban may cause farmers to lose EUR2 million a day

Dairy farmers in Italy may lose up to EUR2 million a day once the 10 to 15 day ban on the production and sale of buffalo mozzarella has been implemented.

The sector has already lost EUR20 to EUR30 million since cheese contaminated with dioxin was detected last month, according to Italy farmers' association, Coldiretti.

Health authorities and veterinarians are currently checking all buffalo mozzarella farms in Italy's southern Campania region where the cheese is produced.

Thorough checks should be done but sales should not be stopped for 15 days, said Giuseppe Politi, president of the Italian Agricultural Producers' Association.

According to Politi, producers should be compensated by at least 400 million euros each.

Italy's Agriculture Minister Paolo De Castro has already announced that the government will pay back the sector the almost EUR20 million it lost.

The minister also said that the buffalo mozzarella sector would be entitled to financial compensation from the EU.

Japan, South Korea and China have stopped importing buffalo mozzarella after the presence of dioxins in the cheese has been detected.

The Italian government has temporarily stopped production at over 80 cattle farms in Campania after inspections of 130 mozzarella-making factories showed higher-than-permitted levels of dioxins in samples from 25.

(EUR1 = US$1.60)