Print version Email to a friend

EU to increase aid offer to farmers hit by E.coli

Tue, 7 Jun 2011 17:37 GMT

Source: reuters // Reuters

Former Croatian Army General Ante Gotovina (L) talks to Ivan Cermak in the court room before the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague, April 15, 2011. REUTERS/Jerry Lampe

* EU to increase 150 mln euro aid offer

* Precise level of compensation still unknown, due Wednesday

* Aid destined for growers of cucumbers, lettuces, tomatoes

(Adds detail, background)

By Charlie Dunmore and Julien Toyer

LUXEMBOURG, June 7 (Reuters) - The European Union's top farm official said on Tuesday he was prepared to raise substantially his initial offer of 150 million euros ($220 million) in financial aid for farmers hit by a deadly E.coli outbreak.

Ahead of a meeting of EU farm ministers in Luxembourg, EU Agriculture Commissioner Dacian Ciolos said the European Commission was prepared to offer up to 150 million euros in compensation to farmers hit by the crisis. [ID:nLDE7561R6]

"I committed myself to review this (150 million) figure, the level of compensation, and to come back with ... a substantially increased proposal as soon as tomorrow," Ciolos told a news conference after the meeting.

Under the plan, producers of fruit and vegetables such as cucumbers, lettuces, tomatoes and courgettes will receive a share of the total value of products they withdraw from the market and destroy, following a collapse in consumer demand.

The Commission initially proposed to reimburse up to 30 percent of total losses, but nine EU states including Germany, France and Spain demanded compensation for 100 percent.

Ciolos would not say by how much the Commission would improve its offer, but he ruled out compensating farmers for 100 percent of their losses.

"I'm ready to increase this 30 percent level, but I don't think the budget available will allow us to go to 100 percent for all products and all producers," he said.

A revised proposal is expected to be drafted by tomorrow, and will be voted on by a committee of member state experts on Tuesday, EU officials said.

Once approved, EU financial aid could be released to farmers by the end of June.

HEAVY LOSSES

Spanish fruit and vegetable producers have been hardest hit by the collapse in sales during the crisis, after German officials initially blamed cucumbers from Spain for causing the outbreak that has so far killed 23 people. [ID:nLDE7561HR]

Spain has estimated its own losses at 200 million euros per week since Germany blamed its produce for the outbreak. The source of the infection has not yet been identified.

EU fresh produce association Freshfel Europe said the latest estimates put the weekly economic damage at about 80 million euros in the Netherlands, 20 million Germany, 4 million in Belgium, 3 million in Portugal, along with 200 million in Spain. (Reporting by Charlie Dunmore and Julien Toyer)