The European Commission has given the green light to a €169 million scheme to support various milk producers across Spain.
The scheme was approved under the State aid Temporary Crisis Framework, adopted by the commission on March 23, in response to the economic impact of the Russian invasion of Ukraine.
The framework recognises that the EU economy is experiencing “a serious disturbance”.
Commenting on the decision to approve the Spanish scheme, European Commissioner for Competition, Margrethe Vestager, said:
“This €169 million scheme will enable Spain to support milk producers affected by the input costs increase caused by Russia’s invasion of Ukraine and the related sanctions.
“We continue to stand with Ukraine and its people. At the same time, we continue working closely with member states to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the single market,” Vestager commented.
The Spanish measure
Under the scheme, the aid will take the form of direct grants for Spanish milk suppliers.
The measure will be open to the producers of cow, sheep and goat milk in Spain affected by the increase in the price of electricity, animal feed and fuel.
In order to cover part of the input costs increase, eligible milk producers will be entitled to receive an aid amount equal to:
- €210/cow for the first 40 animals;
- €140 for any additional cows up to a limit of 180 animals;
- €100/cow beyond 180 animals;
The commission found that the Spanish scheme is in line with the conditions set out in the temporary crisis framework.
This includes that the aid will not exceed €35,000/beneficiary and will be granted no later than December 31, 2022.
The announcement follows the approval of a similar support scheme for Polish farmers worth €836 million.
Under that measure, the aid will again take the form of direct grants and will be open to farmers affected by the increase in fertiliser costs.
Eligible farmers will be entitled to receive aid up to €107/ha of agricultural land and up to €53.50/ha of grassland and pasture. The aid will be capped at the amount corresponding to 50ha.