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EU offers over €16 million in aid to swine sector

The European Commission has approved €3.6 million in state aid to pig breeders in Slovenia and €13 million to pig farmers in Latvia as the sector contends with challenges from COVID-19.

13 May 2021, at 8:54am

The European Commission has approved a €3.6 million Slovenian scheme to support pig breeders affected by the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. Under the scheme, the public support will take the form of direct grants of up to €225,000 per beneficiary, to compensate them for their loss of income caused by the coronavirus outbreak. The aim of the scheme is to help the beneficiaries address their liquidity needs and continue their activities during and after the outbreak.

The Commission found that the Slovenian scheme is in line with the conditions of the Temporary Framework. In particular, the aid (i) will not exceed €225,000 per beneficiary active in the primary agricultural sector; and (ii) will be granted until 30 June 2021.

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The Commission also approved a €13 million Latvian scheme to support pig farmers affected by the coronavirus outbreak. The scheme consists of two sub-measures: (i) support in the form of direct grants to partially cover the losses caused by the decrease in demand of pork and live animals and the subsequent oversaturation of the market; and (ii) support for uncovered fixed costs. The aim of the scheme is to help the beneficiaries continue their activities during and after the outbreak.

The Commission found that the Latvian scheme is in line with the conditions of the Temporary Framework. In particular, with respect to the first measure, the aid will not exceed €225,000 per beneficiary, as provided by the Temporary Framework for companies active in the primary production of agricultural products. As regards the second measure, (i) the aid will not exceed €10 million per beneficiary, and (ii) it will available to undertakings facing a decline in turnover during the eligible period of at least 30% compared to the same period of 2019. Finally, support under the overall scheme will be granted no later than 31 December 2021.