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Dairy Farms to Receive EU Subsidy Boost

Dairy farmers in crisis received a boost from the EU on Wednesday. The EU Commission proposes doubling the upper limit on national subsidies given to dairy farms from the current 7,500 euros to 15,000 euros until the end of 2010.

Karjatilallinen lypsää lehmää.
Image: Seppo Nykänen

Minister of Agriculture and Forestry Sirkka-Liisa Anttilla is satisfied the commission has reinforced the aid. She says increased dairy production by the United States, Argentina and New Zealand is behind the current crisis. It has given rise to overproduction and reduced the income of EU dairy farms.

Anttila says the crisis has been worsened by the economic recession which has hit people's purchasing power.

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