Dairy concerns over extension to Russian ban on food imports
The funding is provided by the European Agricultural Guarantee Fund and is paid under two extraordinary schemes introduced by the European Commission at the end of 2014 to permanently restore balance to the market in fruit and vegetables in the EU.
Farmers from the districts of Blagoevgrad, Varna, Veliko Tarnovo, Dobrich, Kardzhali, Pleven, Plovdiv, Razgrad, Sofia-district, Stara Zagora, Haskovo, and Shumen received aid for the losses incurred due to the Russian embargo on Western food imports.
The compensation is paid for four tonnes of mushrooms, tomatoes, cabbage, cauliflower, gherkins, pears, carrots, nectarines, peaches, peppers, plums, and apples.
Farmers whose applications have already been approved by the commission will receive aid under the two extraordinary schemes, “non-harvesting” and “market withdrawal”.”
In order to receive aid under the two measures, Bulgarian agricultural producers also need to have completed the required procedures at the local units of the SFA and the SFA Paying Agency.
Europe’s fishing sector has gained around €280m in EU support in relation to the ban. Ireland is the third largest EU exporter of pelagic fish — including mackerel and herring — to Russia.
Though Ireland does not sell Celtic Sea herring to Russia, its price has fallen 40% due to the export ban.
Member states are allowed up to 25% of their mackerel quota to be “banked”’ for this year, while the commission is considering allowing similar measures for horse mackerel and Celtic Sea herring, provided scientific research shows it is not environmentally harmful.
EU dairy farmers, however, remain concerned. In January, the EU refused bids by Bulgaria and Romania to win compensation for dairy farmers impacted by the Russian ban.
The dairy sector is under close watch in Ireland. At the outset of the ban last summer, Agriculture Minister Simon Coveney expressed “most worry” over the impact of a €4.5m loss to cheese producers, who are heavily clustered in the Munster region.
At the time, he predicted Irish agriculture as a whole could weather a ban that would, nonetheless, leave a major dent in Irish export figures. During 2013, Ireland exported €232m worth of food and drink to Russia.
The EU has agreed to extend its economic sanctions against Russia until the middle of January 2016. The decision was taken against the backdrop of Russia’s continuing ceasefire violations in Ukraine.
In response, Russian president Vladimir Putin signed a decree to extend the ban on certain food imports from the US, EU, Australia, Canada, and Norway by one year, starting from June 24.
Irish food exporters, notably large dairy processors, have limited the impact of the ban by seeking alternative markets for product they would have traditionally sold to Russia. The post-BSE reopening of beef markets such as the US and China has also helped.
Nonetheless, in Ireland at least, concern remains focused on the impacts for the dairy sector. ICOS and some farmer groups have repeated concerns to both the Department of Agriculture and to EU representatives.
Coupled with superlevy fines and a downward pressure on milk prices this year, many dairy leaders are suggesting the sector will need greater EU intervention than aids to private storage, the main dairy protection measure introduced so far.
ICOS stated: “We are pushing the commission to be more proactive on the matter as dairy in particular is suffering in what is really a geopolitical game that has nothing to do with our industry.”
