21 June 2019

2 minute read

The establishment of the fund reflects the Commission recognition of the particular challenges facing the Irish beef and veal sector due to market uncertainty and an unprecedented and sustained period of low prices. This exceptional measure, provided under the Common Market Organisation of the Common Agricultural Policy (CAP), will offer support to the Irish farmers affected.

Due to the drop in prices, with a fall in margins estimated at 11 percent to 19 percent in the past year for the beef and veal sector, the Irish authorities have calculated that beef farmers have lost just over €100 million.

Agriculture and rural development Commissioner Phil Hogan said: "This fund is a recognition by the European Commission of the particular difficulties experienced by Irish beef farmers arising from significant prices falls and market uncertainty.

"The money made available by the EU, which may be matched by the Irish government, will protect a fragile but essential agricultural sector. Moreover, it will provide direct support to hard-hit farmers and will ensure the long-term viability of the Irish beef sector. The Commission will continue to monitor closely the overall market situation."

Once formally adopted by the Commission early next month, the Irish authorities will have until the end of July to design the criteria within a set framework for granting the aid. They must avoid the distortion of competition when distributing it.

One of the key objectives should be to ensure the beef and veal sector's long-term viability through, for example, the development of new markets, the implementation of quality schemes, or the improvement of farmers' environmental sustainability.

TheCattleSite News Desk