Danish livestock sector to receive an economic injection
A new economic injection is going to help the Danish cattle sector to navigate through this uncertain market conditions brought by the COVID-19 crisis, announced the Ministry of Food, Agriculture and Fisheries. Farmers will receive an additional DKK 65 million (€8.73 million), which makes the total amount of subsidies poured in the sector to reach DKK 245 million (€32.91 million).
"It is a sector that has come under extra hard pressure under the corona. With DKK 65 million, we hold the hand during a business that is characterized by low prices. It is absolutely crucial that we continue to produce cattle in Denmark - the extra money for the slaughter premium scheme must help to ensure this", said Minister Mogens Jensen.
Over the last couple of years, there have been low prices for slaughter cattle and an increase in the export of calves. The price level is also affected by the Corona closures of the restaurant industry, because it has led to lower demand for the more expensive cuts, which usually go to, among others, restaurants at home and abroad.
Exports of infant calves increased by more than 25% in 2019, which is the largest export since 2013. "We must do what we can to prevent more cattle farmers from turning the key. Therefore, I already promised to work for an increase in the slaughter premium at the Cattle Congress earlier this year. Since then, the need for a helping hand has only increased due to the corona crisis. I am now fulfilling that promise by securing more money for the slaughter premium scheme already from 2020," added Minister Jensen.
The EU Commission has accepted the increase in the slaughter premium for 2020, which the Danish Agency for Agriculture will pay in the spring of 2021.
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