May 8, 2009

European farm power France may be the top overall beneficiary of the EU's generous farm subsidies but the biggest single payments go to companies in Italy, a study released Thursday (May 7) showed.

Of the big individual hand outs, some exceeding EUR100 million, in 2008, Italian firms took the top three places, according to UK agriculture watchdog Farmsubsidy.org.

Italian sugar group Italia Zuccheri received EUR139.8 million under the EU's Common Agriculture Policy, while its rival Eridania Sadam was granted EUR125.3 million.

Banking group Banca Popolare Italiana, which has farming assets, was paid EUR96 million.

Indeed Italian companies figured in five of the top six places, separated only by Irish farm group Greencore Group PLC, with a payout of EUR83.4 million.

The study analysed whether the 27 EU nations are complying with new rules that obliged them to make public the beneficiaries of CAP payments - which eat up around 40 percent of the total EU budget - by April 30.

A company from France - which as the EU's biggest farm producer is the largest subsidy recipient, accounting for around 20 percent of the CAP budget - was listed seventh: poultry group Doux, with EUR63 million.

In terms of compliance with the new rules, Germany was deemed to be in active defiance, by simply refusing to publish its data. Meanwhile, 18 other countries were, or appeared to be, in breach of the regulations.

The UK, whose royal family is a major CAP beneficiary, was deemed to be in good compliance with the rules, along with Belgium, the Czech Republic, Denmark, Estonia, Finland, Romania and Slovenia.

US$1 = EUR0.748827 (May 8)