April 12, 2006

 

European Parliament expands aid for poultry producers

 

 

The European Parliament has approved additional aid for chicken producers so as to reverse falling prices for poultry in the EU.

The aid programme would help EU chicken farmers facing a sharp drop in consumption caused by the outbreak of avian flu.

 

Last week, members of the European Parliament said they supported the European Commission's efforts to offer compensation not just for those directly affected by the virus, but also farmers suffering due to the decreased demand.

 

Parliament approved a Commission proposal that would create a legal base for compensating farmers who have been hit by falling demand due to bird flu and amended the proposal to include emergency vaccination as an alternate method of stamping out the disease and a wish to restrict the emergency measures to circumstances that pose a threat to livelihoods.

 

The Parliament also called for a campaign to re-establish consumer confidence in poultry.

 

However, they ruled out compensation to farmers hurt by the drop in exports.

 

Previous regulations allow the EU to co-finance compensation measures only in farms hit by bird flu or where farmers are prevented from moving their poultry because of veterinary restrictions.

 

The proposal as approved by Parliament will now be discussed at the agriculture and fisheries council. European ministers are expected to quickly reach a decision, with the new regulation expected to be enacted in the first half of May, according to a press release.

 

In a related news, global poultry consumption is estimated to fall 3 million tonnes from 2004's estimates of  84.6 million tonnes, to 2006's estimates of 81.8 million tonnes, said FAO commodity specialist Nancy Morgan.

 

According to the FAO report, consumption shocks ranged from a dramatic 70 percent decline in Italy in mid-February to 20 percent in France and 10 percent in northern Europe.

 

The crisis has also affected the US$42 billion feed industry in Europe, with demand losses estimated at up to 40 percent in some countries, the FAO stated.