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Dairy Sector Receives 31million Subsidy Boost

06 December 2012

SPAIN - Days before the Galician elections the government has clarified a rise in dairy subsidies which the agriculture minister has said is still open to modification.

The government has announced that 31 million euros is now available in the agricultural budget after a second draft of the royal decree has an added clause introducing extra subsidy payments for dairy farmers.

This announcement cooincides with the elections in Galacia, a traditional dairy area which played host to the recent milk strike and considerable unrest in the farming community over milk prices. The government stresses that the clause could still be modified and the government has retained the right to do so.

COAG (The Coordinator of Farmers and Ranchers) has requested that Arias Cañete, agricultural minister, explains the reasons behind this last minute change which has seen the ministry keep powers to modify the subsidies again as they have doubts about the bill.

"Demonstrations and unrest like the milk deliveries strike last week in Galicia is evidence of the failure of the agreement signed by the Ministry with industries, distribution and third of farmers as prices remain stranded," Miguel Blanco, Secretary General of COAG.

"Farmers are stretched because of months expoloitative milk prices which unsustainable and are seeing produce sold below cost of production."

Also announced by the government is a 5.5 million euro funding injection for rural training for farmers, ranchers, entrepreneurs, managers and other workers in rural businesses. The aim is to boost skills and knowledge within the rural economic sector.

TheCattleSite News Desk

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