EU farm ministers have been told by Commissioner Franz Fischler that the BSE situation is worse than had been previously assumed.
"The situation is considerably more dramatic that we had envisaged before Christmas," the agriculture commissioner told a press conference during a break from meetings aimed at assisting beef farmers whose livelihood is threatened by the crisis.
"The latest market indications are alarming," Mr Fischler said. "Many third (non-EU) countries have banned EU beef... If this continues, 53 percent of our export capacity will not be utilized... a reduction of 375,000 tonnes this year."
He categorically excluded any further help for farmers this year beyond 1.2-billion-euro programs already allocated in the 2001 budget.
"We really are at the very limit, if not beyond, in terms of what we can finance with the community budget," he said. "With all the will in the world, and fully recognizing the dire straits of farmers at the moment, we have zero room for maneuver," he added.
He urged the 15 member states to adopt the "purchase for destruction" (PFD) scheme approved by the council last month but conceded the program is flawed.
"The scheme is simply the lesser evil. It is cheaper, offers a solution to farmers who cannot sell their animals, it disposes of the lowest quality beef at the lowest price and hence reduces the surplus," he said.
Mr Fischler said Ireland along with France are currently using the PFD scheme with good market results. He also urged adoption of production-cutting measures, including subsidized premiums to farmers for bringing calves to slaughter at a younger age, thus reducing weight stockage.
AFP
