Farmers to be compensated for lost exports

IRISH farmers will be able to receive compensation if they have lost export sales as a result of the E coli outbreak, but the amount has yet to be fixed.

A crisis meeting to help EU farmers suffering from the fallout of the contamination that has claimed 26 lives so far agreed that compensation should be available.

Agriculture Minister Simon Coveney, who attended the meeting in Luxembourg, said he did not know how many Irish farmers had been affected by the drop off in vegetable sales as a result of countries banning EU produce and consumers fears.

“We do export vegetable but mainly potatoes, although our farmers do grow cucumbers, courgettes and peppers as well as other vegetables. But I do not know to what extent they have been affected by the collapse of the market for a lot of vegetables and some fruit.”

The European Commission offered €155 million as the basis of a compensation fund but the ministers said the sum was not enough and urged them to offer substantially more money.

It was based on 30% of the market value of the produce lost and the quantities would be calculated on the basis of the amount of vegetables produced during the years 2007-2010.

Mr Coveney said he expects this to be increased to 50% of the base and the sum doubled to €300m. “We are likely to hear the revised details in three to four days.”

He added that it was important that Ireland realises it could find itself being unfairly blamed as has happened Spain. “We strongly support the principle of compensation as a result of being unfairly or inaccurately blamed.”

A number of countries, including Russia, have banned EU vegetables despite the source of the potentially fatal E coli bacteria still not being found.

Spanish farmers said they were losing €200m a week while French, Dutch, Belgian and Portuguese farmers are demanding compensation. German farmers are also likely to claim that their losses so far have been in the region of €50m.

Defending the EU, Health Commissioner John Dalli told journalists after yesterday’s meeting: “I believe our policies on food production and food safety are the best in the world.”

Fine Gael MEP Máiréad McGuinness during a European Parliament debate, called for greater coordination between all agencies working at national level and the commission agencies to determine the source of the contamination.