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EU proposal to cut culling subsidies 10 Oct 2006

European culling subsidies might be reduced from 100 to 75%. This proposal was made by the European Commission in Brussels yesterday.
In addition, livestock producers would only receive money when outbreaks would cause a production loss of more than 30%.
Rule reform
These proposals were made in an attempt to reform rules for state subsidies in the livestock sector, press agency AgraEurope says.
At this moment, livestock producers receive a full repay after compulsory culling of their herds or flocks once they have been struck by diseases like e.g. Foot & Mouth Disease. In the proposals state subsidies should only go as far as 75% of the worth.
Dutch reaction
The Dutch Product Board for Livestock and Meat (PVV) says the proposal is not a very wise idea, as it could cause livestock producers to be hesitant to report a disease.
PVV Secretary Jan Klaver said, "Payments for cullings are based on current animal market prices. However, market prices could rise due to massive cullings. We can imagine the Commission would like to correct that, but only repaying 75% is too low. It could turn disastrous for the duty to report a disease."

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