France to offer livestock farmers 400 mln euro in aid
Farmers who faced losses linked to rising feed costs will receive the aid
17 March 2022
2 minute read
France is to provide 400 million euros ($440.12 million) of aid to livestock farms that have been hard hit by the soaring cost of feed grain in the wake of Russia's invasion of Ukraine, the government said on Wednesday.
Russia's invasion of fellow exporter Ukraine has disrupted shipments through the Black Sea, sending European grain prices to record highs and adding to feed costs that had already jumped during a commodities rally last year, reported Reuters.
As part of a wider plan to help the French economy weather the effects of the conflict in Ukraine, the government will offer the aid over four months to livestock farms that have faced losses linked to the cost of feed, said Agriculture Minister Julien Denormandie. Read full story
French producers of livestock feed had earlier asked the government to guarantee a certain volume of grain for their sector in the face of rising export demand linked to the invasion of Ukraine, in addition to financial support for livestock farms.Read full story
The government did not announce any measure to reserve supplies for the domestic market, with Denormandie saying that France faced no food shortages and had an export role to play, helping to feed countries hit by disruption to Ukrainian supplies.
Traders say that France, the European Union's biggest grain producer and exporter, is among EU countries to have seen an upturn in export demand. Read full storyRead full story
Speaking alongside Prime Minister Jean Castex and other ministers, Denormandie reiterated his support for a proposal being studied by the European Union to let farmers cultivate fallow land to boost production. Read full story
Regarding fertiliser, France has sufficient supplies for the spring growing season, but the government will develop a plan to ensure availability for the autumn, Denormandie said.
The conflict in Ukraine and Western sanctions against Russia have led to higher prices and shorter supply of nitrogen fertiliser, a key nutrient for crop yields.
French farmers are also set to receive government support on fuel costs.
Source: Reuters
