The President of the Government announced a package of measures, amounting to nearly five million Euros, which are specifically designed to support farmers in the Region.
"These measures are specifically aimed at the dairy industry and represent an investment of five million Euros. They add up to seven million-Euro public investment" that is planned the proposed Plan for 2016, which was presented today to social partners, said Vasco Cordeiro.
The President of the Government spoke today in Ponta Delgada at the end of the meeting of the Strategic Concertation Council. The government official stressed that measures, in accordance with commitment to present them under the Plan and Budget for 2016, will add up to other the Government has already implemented, such as the line of credit "AgroCrédito," amounting to 30 million Euros, and the search for new markets for Azorean dairy products.
Speaking to journalists, Vasco Cordeiro announced the anticipation of the payment of 70 percent of the premium for dairy cows, the premium for suckler cows and the premium for milk producers. Hence, the Government will seize the opportunity provided by the European Commission regarding the anticipation of financial aid payments.
In this context, the allocation of 8.5 million Euros for the regional dairy industry will be anticipated.
The measures announced today also include the anticipation of 85 percent of the payment of agri-environmental measures, amounting to 13 million Euros. The payment is schedule for late October.
"The premium for sucker cows will be reinforced in 2015 on the islands of São Miguel and Terceira, increasing from 145 Euros to 190 Euros." This may represent a financial effort of three million Euros from the Regional Budget, Vasco Cordeiro announced, reminding that the premium is already set at 190 Euros on the remaining islands.
Moreover, the premium for dairy cows will increase to 190 Euros next year on the islands of São Miguel and Terceira, said Vasco Cordeiro, who recalled that, in the case of Terceira, the increase in the premium amount was already planned under the Economic Revitalisation Plan for Terceira (PREIT).
Vasco Cordeiro also announced the creation of a line of credit similar to the one that existed under the designation SAFIAGRI in order relieve the financial burdens of farms that already have taken out bank loans.
The Government will also implement a programme designed to restructure the dairy sector in order to ensure adequate conditions to producer who, eventually, may wish to cease their farming activity. Moreover, it will reinforce the search for new markets for Azorean dairy products, namely with regard to the two processes that are in a more advanced stage: Canada and Iran.
The President of the Government mentioned the existence of areas where the Government continues to follow with special attention, namely the price of production factors. This should be the moment for all those involved in the sector to reassess their capacity to address cost relief needs of farms.
The Government will also draw attention to the practices conducted by some dairy factors concerning milk producers, particularly certain attitudes towards them that raise questions, such as the introduction of penalties covering the entire production universe, said Vasco Cordeiro. In this regard, the President of the Government added that another essential area concerns the increasingly effective assessment of the relation between farm cost structures and their profitability, for which there is available funding.