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June 8, 2011

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EU set to help farmers

THE European Union's farm chief yesterday proposed giving farmers 150 million euros (US$219 million) in compensation to help those hit by plunging demand for produce because of the E. coli outbreak.

At a meeting in Brussels, Farm Commissioner Dacian Ciolos said agriculture ministers were considering whether farmers can recoup from EU coffers up to 30 percent of the value of vegetables unsold because of the outbreak.

EU farmers outside northern Germany, where the crisis is located, have been livid that prices for their crops have plummeted after being wrongly blamed for the crisis.

Spain and France said the proposed figure would not be enough.

Spanish Agriculture Minister Rosa Aguilar said Spain and a number of other countries had drawn up a document proposing a list be made of products affected and that farmers get between 90 and 100 percent of market value.

She was backed by French Farm Minister Bruno Le Maire.

Spanish farmers say they are losing some 200 million euros a week and Italians cited 100 million euros a week. Losses stood at 50 million euros in the Netherlands and 30 million euros for both Germany and France.

The crisis was being compounded by the fact it was hitting just when many vegetables and fruits were ripe and ready for market.



 

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