EU to fund states' bird flu measures

THE EU will fund 50% of the cost of any state help given to the poultry sector suffering a drop in demand for meat and eggs because of the avian flu crisis.

Each country will decide how they will support their industry and submit proposals to the European Commission, a spokesperson said.

However, it will be another month at least before any arrangements can be put in place, despite the fast-tracking of the decision-making process.

Minister for Agriculture Mary Coughlan appeared to favour providing storage for unsold poultry, while the EU's Agriculture Commissioner, Mariann Fischer Boel, would prefer to see the production process of hatching chicks stopped for a time.

The effects on public consumption have varied widely from one country to another, with Italy reporting a drop of 70%, while in Ireland the market dropped only slightly and in the past few weeks has recovered somewhat.

The French government is reported to have set aside €63 million for industry support while there are reports that a fund of €100m is being set up in Italy.

The commissioner said that because of the different conditions in each country they prefer to leave each to decide what to fund.

"Each member state will be able to design the measures best suited to its particular situation. In my view, the most sensible approach would be to compensate farmers for measures which temporarily reduce production," she said.

"I hope that the European Parliament and the Council of Agriculture Ministers will adopt this measure quickly, to allow the aid to flow as soon as possible."